Probably a bit of both
The simple trend analysis suggests that there was a combination of factors that contributed to lower proportions of one person households than expected. These factors appear to include reaching an optimum proportion of older one person households but also an incresingly unaffordable housing market limiting the ability of younger people to live alone. The exact split between these and other factors is difficult to determine and there will be some interdependency. For example, divorce numbers have been highly correlated with transactions in the housing market over the last 15 years.
The largest decline in the proportion of one person households is in London, the most unaffordable of housing markets. This suggests that affordability pressures are probably the most important factor in lower proportions of one person households. If we have reached peak loneliness then it is more likely either a false summit or plateau created by the existing housing crisis. If housing affordability were to ease then further larger increases in the number and proportion of one person households could be expected.
Looking ahead it is essential for us to gain a greater understanding of the motivations for why one person households form and what has been preventing them from doing so. This will help to create more accurate forecasts for housing need and ensure that we are building the right mix of homes in the right locations.
It is important to note that an increase (actual or projected) in the number of one person households does not necessarily translate directly into a need to build more one bedroom homes. Some “new” one person households will be widowed people under-occupying the family home (who have historically resisted such a drastic downsizer move), others will be separated or divorced people who need a spare room for their children or home office. Younger people that might previously have bought a one bedroom home as a quick and easy step onto and up the housing ladder might be put off by the longer term commitment that now involves and so save for a two bedrooms instead. I will be investigating these and other related issues in future notes.