LODGE: A Living Sector Update Summer 2026
Living Arrangements in Flux: What Shifting Demographics Mean for the UK Living Sector
By Rebecca Arnold, Charlotte Posnansky and Harry Blackmore
LODGE: A Living Sector Update Summer 2026
Living Arrangements in Flux: What Shifting Demographics Mean for the UK Living Sector
By Rebecca Arnold, Charlotte Posnansky and Harry Blackmore
Every year, the Office for National Statistics (ONS) reports on living arrangements in the UK. Both the 2025 and 2026 ONS reports have highlighted a shift in the traditional family structure which reflect broader societal changes and economic pressures and has the potential to significantly impact the Living sector.
The key takeaways from the reports are:
- Between 2014 and 2025 there was an increase in the number of people living alone from 7.6 million to 8.6 million, now representing almost 30% of households in the UK.
- Of those living alone, around half are aged 65 or over.
- 28.7% of people aged between 20 and 34 still live with their parents.
- More couples are living together without getting married.
- There continues to be a trend of a reduction in the number of couples getting married or entering into civil partnerships.
Cohabitation on the rise
Over the past decade, the proportion of family households that are cohabiting couples has increased from 16.4% to 17.6%. This shift suggests a growing acceptance of cohabitation as a viable alternative to marriage or civil partnerships. This could be for a number of reasons. Perhaps people are more hesitant to tie the knot now that cohabitation has become more socially acceptable. People may also be placing more emphasis on retaining autonomy over their financial arrangements, rather than having their finances redistributed pursuant to the English Family Court’s broad discretionary jurisdiction. Despite its fallacy, the common-law marriage myth remains persistent and many people who choose to cohabit may not realise that under current law they would have very little legal protection upon the breakdown of their relationship or the death of their partner. The relevant law on property rights is complex so any legal proceedings are not straightforward. The situation is particularly acute where cohabiting couples have children as the only financial obligations that arise are on behalf of the child, not the parent. There have been calls for reform in this area of the law for sometime, and the government has recently announced a consultation which, as part of its remit, aims to address the law for cohabitants on separation and intestacy. This area of law may therefore provide for greater protection for cohabitants in the future. It is therefore always wise for individuals to take specialist legal advice in advance of any potential change in relationship status to ensure that their financial position is protected as far as possible and that they are fully informed of the implications of such a change.
The boomerang generation and the rental market
As part of a generational shift, it is increasingly uncommon for first-time buyers to be young adults. Many are therefore faced with a choice early in life, particularly following university: to turn to the rental market or to become part of the "boomerang generation" - young adults who return to live with their parents having previously lived independently. Those returning home may have significant financial implications for their parents, who may find their plans to downsize or save for retirement impacted by them having to shoulder the financial burden of having adult children at home. Having a child return to live at home may be particularly hard for a parent who lives alone, perhaps following the breakdown of a relationship or a divorce. Whilst it may be nice to have the company and emotional support, provision may not have been made in any financial settlement for the parent to have their adult child living with them on a permanent basis. This may create particularly acute difficulties where the financial arrangements on divorce were carefully calibrated and contingent upon the future release of capital by downsizing. Divorced individuals may find themselves living alongside their adult children in a significantly smaller property than the former matrimonial home, which was purchased with a view to accommodating their adult children for short visits only. Meanwhile, those looking to rent are often very interested in living in more urban and developed areas but are either unwilling or not yet ready to purchase a property. This group is arguably the exact demographic that Build to Rent – where properties are purpose-built for the rental market, offering professionally managed homes with security of tenure and community amenities – was designed to serve.
Living Alone: A Growing Trend Among Older Adults
The statistics suggest that there has been an increase in the number of people living alone and this trend is forecast to continue. By 2039, 10.7 million people are expected to live alone, over 2 million more than today, and many will fall squarely into the Build to Rent target market. Notably, just under half of those living alone are aged 65 or over – and this group has accounted for 93 per cent of the growth in single-person households over the past decade. This rise in older adults living alone may be attributable to the increase in life expectancy or a result of people becoming more reluctant to commence relationships later in life following the breakdown of a marriage or other long-term relationship. The term ‘silver-splitters’ has also been coined in recognition of those couples who are now divorcing later in life. What will the implications be for these people long-term as costs rise, they grow older and require more support? An increasingly popular option for older adults is a later living scheme – rental properties which provide residents with the opportunity to live independently while also accessing care and support in specifically designed environments. This also represents an area where the gap between supply and demand seems set to grow. The population of over 75s in the UK is increasing by 3% per year, while the UK’s senior living sector has only grown at a rate of 0.3% annually in the past decade. This demographic shift represents a significant opportunity for the Living sector. It will be interesting to see how these trends develop over the coming years, and how the Living sector will evolve alongside them. With the Renters’ Rights Act 2025 having come into force this year and planning reform underway, the regulatory and policy landscape is shifting as fast as the demographics themselves. It is clear is that demand exists across every segment of the Living sector and this presents a significant opportunity for those active in the market.