UK car ownership statistics: 26% of households have no car

The 2021 Census recorded 29.0 million households in England and Wales. Of these, 26% had no car or van - a figure that has been broadly stable over the past decade but masks enormous regional variation. A further 41% owned one car, 25% owned two, and 8% owned three or more.

The national average of 26% no-car households compares with 27% in the 2011 Census, suggesting car ownership levels have changed little at the national level despite rising urbanisation and changing commuting patterns. However, the 2021 figure was taken during and after the pandemic period, which may have temporarily suppressed car sales and affected purchasing patterns in some areas.

Inner London dominates the lowest car ownership rankings. Tower Hamlets has the highest proportion of car-free households in England and Wales at 63.4% - nearly two in three households. Hackney follows at 60.2%, then Islington (58.6%), Lambeth (55.9%), and Southwark (54.6%).

The pattern reflects the infrastructure available in these areas: dense public transport networks, high population density, limited parking, and high parking costs all reduce the incentive to own a car. Many residents of inner London boroughs can reach work, shops, and services entirely on foot or by tube and bus.

Outside London, Brighton and Hove (39.4%), Oxford (37.6%), Edinburgh (33.0%), and Manchester (30.2%) all sit above the national average. University cities feature consistently - a student population combined with walkable city centres creates the same disincentive to car ownership.

Not owning a car does not mean never needing to drive one. The DfT National Travel Survey 2023 found that 18% of adults in households without a car had driven in the past year - borrowing a vehicle from family, hiring, or using a car club. For occasional use of borrowed or hired vehicles, a short-term insurance policy is often the most practical option.

The most common scenarios are: borrowing a parent's or relative's car for a weekend trip or house move; driving a hired vehicle for a one-off journey; or using a car club vehicle that requires the member to arrange their own additional cover. In each case, a standard annual policy on a car that does not exist is not an option - and being added as a named driver on the owner's policy is not always practical for a single day.

Temporary car insurance covers drivers who need to use a vehicle they do not own for a defined period - from one hour to 28 days. The cover is comprehensive and does not affect the car owner's existing no-claims bonus.

The sharpest decline in car ownership over the past two decades has been among young adults. In 2002, 48% of 17-20 year olds held a full driving licence; by 2023 that figure had fallen to 27%. Among 21-29 year olds, licence holding fell from 75% to 63% over the same period.

The reasons are well-documented: the cost of learning to drive and insuring a first car, city living among young graduates, and the availability of alternative transport options have all reduced the incentive to get a licence early. Many young people still learn to drive and pass their test - but later, and with more intention to use the licence for specific situations rather than as a daily commuter tool.

For those in this group, learner driver insurance on a parent's car allows practice in a real vehicle without requiring the learner to own one. Once passed, car insurance after passing your driving test covers the first policy options for new drivers who do own a car.