There has been a significant increase in the proportion of people below the age of 44 in the private rented sector, as they find owner occupation harder to achieve.

That’s one of the findings in the English Housing Survey, which also notes that the drop in owner occupation among 25 to 34-year-olds is “particularly pronounced”.

In 2016-17, the private rented sector accounted for 4.7m (20%) households, making it larger than the social rented sector, which accounted for 3.9m households (17%).

There was no change in the size of either sector between 2015-16 and 2016-17.

What has changed is the composition of those in the private rented sector.

In 2006-07, about three quarters (72%) of those aged 35-44 were owner occupiers.

This fell to half (52%) in 2016-17, while the proportion of the same age group in the private rented sector rose from 11% to 29%. The proportion in the social rented sector did not change.

Meanwhile, there was a marked increase in the proportion of those aged 25-34 in the private rented sector, rising from 27% in 2006-07 to 46% in 2016-17.

Over the same period, the proportion of the same age group in owner occupation over the same period decreased from 57% to 37%.

Owner occupation rates have remained unchanged for the fourth year in a row, making up 14.4 million households (63%).

The proportion of households in owner occupation increased steadily from the 1980s to 2003 when it reached its peak of 71% but has gradually declined to its current level, according to government figures.

The survey said: “While the overall rate of owner occupation has not changed in recent years, the composition of the group has: there are more outright owners, while the proportion of those buying with a mortgage is down.”

In 2016-17, 34% of households were outright owners, while 28% had mortgages.

Since 2013-14 there have been more outright owners than those with mortgages and the proportion of mortgaged households declined again in 2016-17 to 28%, down from 31% in 2013-14.

The survey explained: “The increase in the number and proportion of outright owners is at least partly explained by population ageing, with large numbers of baby boomers reaching retirement age, paying off their mortgages and moving into outright ownership.”

In London, private renting was the most prevalent tenure in 2016-17 (30%), followed by outright ownership (25%) or renting in the social sector (22%).

Outside of London, outright ownership was the most common form of tenure (36%), followed by buying with a mortgage (30%) and renting in the private (19%) and social (16%) sectors.

Residential Landlords Association policy director David Smith said the survey showed that the private rented sector was vital to the housing market.

He said: “The findings reiterate the importance of the private rented sector for families across the country. Larger than the social sector, and housing more families with children, the private rented sector provides much-needed housing for nearly 5m people.

“The Government needs to recognise its vital role in the housing market and implement pro-growth tax and planning policies to support the majority of landlords who are individuals to meet ever growing demand for rented housing.”