Britain's private rental sector has expanded to levels not seen since the 1960s, government figures show.
Demand for privately-rented accommodation is likely to grow further, experts say, while political pressure is increasing for landlords to be taxed more heavily and regulated more tightly.
According to the English Housing Survey 2010-11, published by the Department of Communities and Local Government this month, 16.5 per cent of households in England lived in privately-rented homes last year, 17.5 per cent in social housing and 66 per cent in owner-occupied homes.
There were 3.6 million privately-rented households in 2011, the highest figure on record since 1961. Of the 394,000 new households formed in England in 2011 two-thirds were private renters.
The move to private renting has accelerated as home ownership becomes increasingly tough, according to Lucian Cook, research director at Savills Residential Research.
'That reflects the increased deposits required by would-be first-time buyers, as mortgage finance at high loan-to-value ratios has all but dried up. For example, in London the average deposit for a first time buyer now stands at GBP58,000.'