The number of people living in each household is set to fall, as one-person homes and smaller families become the norm.
New statistics from the Department for Communities and Local Government show there is set to be a decline in the average household size from 2.35 to 2.21 people by 2039.
While the number of people making up each home is predicted to fall, the total number of households is forecast to rise significantly from the current 22.7 million to 28 million.
Allison Thompson, managing director at property specialist Leaders, says: “This research highlights the need for more new housing to be built across the UK, as the total number of households rises by more than five million.
“With many households made up of just one or two people, much of the population is likely to be living in apartments and small houses by 2039, making these types of homes increasingly important.
“Indeed, one-person homes are projected to increase by 68,000 each year up to 2039, at which time they will make up 33 per cent of all households in the UK.
“The findings should also be of tremendous interest to landlords and prospective buy-to-let investors, who can tailor their investment strategy to ensure their portfolio is made up of properties that will meet the demands of the market over the next two decades.”
Another key trend over the coming years is set to be the increasing number of households headed by older people. An extra 155,000 homes are predicted to be led by somebody aged 65 or over each year to 2039, while the number headed by a person aged between 25 and 34 will fall by 9,000 each year.
For more information on selling, letting, buying, renting or investing in property, please contact your local Leaders branch.