The proportion of households living in the private rented sector (PRS) has doubled in the last 10 years to five million, and is expected to reach 5.79 million by the end of 2021, when nearly one in four households will be living in the PRS.

The growth of PRS, or multi-housing, is analysed in a report from property consultant Knight Frank, which puts the sector’s current size at £25bn and suggests it will grow to £70bn by 2022.

Knight Frank says PRS growth has been spurred by conditions in the housing and labour markets.

“Younger workers especially are taking advantage of the increased flexibility of renting as a tenure which allows moving between locations without any of the costs associated with buying or selling a property,” it says. “Affordability constraints in the sales market are also curtailing some tenants’ plans for house purchase, resulting in a longer stay in the PRS as they save for a deposit.”

Commenting on the report, Darryl Flay, chief executive at Essential Living, a London-based developer and operator of homes for rent, said: “Essential Living was the first company set up to deliver hotel-style apartments for rent in London, in 2012.

“Our ambition is to make renting aspirational, providing professional service, onsite management and a range of lounges and workspaces that enable renters to think of the whole building as their home. This is only possible because we develop and design our buildings specifically for renters, and have no plans to sell any of the apartments.”