Few political ambitions enjoy the same level of cross-party support as increasing homeownership, but too often the goal is framed in the context of a tenure battle.

Successive governments have introduced schemes designed to help first-time buyers onto the property ladder, an ambition that remains firmly in place for the current administration.

Announcing the Your First Home scheme, Prime Minister Andy Burnham said the initiative seeks to help those “who have given up hope of ever having a home to call their own”, with a loan worth 20% of their prospective new build property’s value.

For many people, owning a home remains a long-held aspiration, offering a sense of stability and the prospect of greater financial security over the longer term. Efforts to make homeownership more accessible deserve support.

At the same time, there is a risk that renting and homeownership are portrayed as adversarial tenures, when the UK’s housing challenge is too significant to be solved by any single part of the market. When promising to increase housing provision, politicians must recognise the role that homeownership, social housing and private renting each play in meeting different housing needs.

The private rented sector (PRS) is sometimes discussed only in the context of those who cannot buy, and while it often does serve this vital purpose, that view overlooks the broader role it plays within the housing market.

For millions of people, private renting provides a home at a particular stage in life, whether that is after leaving the family home, relocating for work, attending university, starting a family, or saving towards a deposit.

In many cases, renting is not an alternative to homeownership but part of the journey towards it.

Household formation does not begin when an individual purchases their first home. It often begins years earlier in rented accommodation. Renting gives people the opportunity to live independently, manage regular household costs, budget for monthly commitments and gain experience of running a home before taking on the financial responsibility of ownership, helping many prospective buyers prepare for the next step.

If people cannot access suitable rented accommodation while they save, build careers or move between locations, the route into homeownership becomes more difficult rather than easier.

Underlying demand for rented housing remains substantial, supported by demographic trends, affordability pressures and changing patterns of work and family life. Looking ahead, there is little reason to expect demand for either homeownership or rented housing to diminish significantly.

Analysing the development of buy-to-let over the past three decades reinforces that point. The sector grew because it addressed a housing need that existed then and continues to exist today.

The sector has not simply grown in size; standards have improved too. This is relevant here because the PRS is not only viewed as competing against the social rented and owner occupied for stock, it is deemed the poor relation in terms of quality.

While there is more work to do, the perception of PRS homes as synonymous with poor quality is outdated. The proportion of non-decent privately rented homes has fallen from 47% in 2005 to 22.3% in 2024, reflecting substantial investment by landlords.

There are also encouraging signs that investment in more energy-efficient homes is gathering pace. Our most recent financial results statement revealed how during the first half of the 2026 financial year, properties rated EPC C or above accounted for 56.4% of our lending, up from 49.9% in the first half of the 2025 financial year.

As policymakers look for ways to tackle housing shortages and support aspiring homeowners, the focus should not be on choosing between tenures but on ensuring each has the conditions to meet the needs of the people who rely on it. For the PRS, that means political and economic stability, clear and proportionate regulation and enough confidence for landlords to make long-term investment decisions.

The wider industry has an important role to play too. Lenders can support landlords by bringing innovative products to market to help fund improvements and reward investment in more energy-efficient homes in readiness for changes to minimum energy efficiency standards. In turn, brokers can help landlords understand the options available to them and prepare for future requirements.

Done well, that partnership can support not only the supply of privately rented housing, but the continued improvement of its quality. The PRS already plays an important role in meeting the country’s housing needs and will continue to do so alongside homeownership and social housing.

Louisa Sedgwick, managing director of mortgages, Paragon Bank