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Home ownership falls to 30-year record low

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Home ownership in England has fallen to its lowest level since 1985 despite a raft of initiatives designed to boost the number of people who own their home.

The Financial Times reports figures from the annual English housing survey show around 63 per cent of households owned their homes in 2015/16.

Renters account for almost a fifth of all households after another 250,000 households added to the number of tenants over the year.

Over the last decade, the number of households with a mortgage dropped by 1.7 million, and the number of those owning outright rose by 1.3 million.

Among 35-44 year olds the number of homeowners fell by 1.1 million.

Savills director of residential research Lucian Cook told the newspaper: “The figures show the generational divide in housing is continuing to widen, with ongoing falls in levels of mortgaged home ownership and corresponding increases in levels of private renting for households in their 20s, 30s and 40s.

“At the other end of the scale, levels of debt-free home ownership among those at or approaching retirement, who benefited from the boom in home ownership in the 20th century, continue to increase.”

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Comments

There are 2 comments at the moment, we would lover to hear your opinion too.

  1. Interesting, but many gaps remain. Over the last 30 years the divorce rate as soared, while at the same time marriage is not what it was. Therefore one my ask do singletons and those in a relationship (but not married) wish to commit to home ownership?

    Additionally, perhaps renting is a choice rather than an imperative for a significant number. The young today have no concept of saving. They prefer to blow it. Youi can see plenty of them in restaurants and pubs at any evening of the week, spending amounts that would make me (a homeowner, no debts and solvent) blanch. Perhaps they prefer to live it up rather than struggle to buy their own home. Or more likely they want to have it both ways and can’t afford it.

  2. Harry has a point about the young spending too much and not saving, as I see it with my own children. However with both working in London it is impossible for them to purchase currently, even if my wife and I assisted them with a deposit, so they have to rent. This is likely to change in the next few years as interest rates rise and the BTL mortgage market “withers on the vine” due to the pending tax changes. There is likely to be a slump in property prices, as supply increases due to a large scale sell off of BTL properies and increased building encouraged by the government. This will encourage young adults then to save more as they will at last be able to see the possibility of getting on the “housing ladder”.

    David Cameron and George Osborne certainly got the BTL taxation policy correct and I have a lot of sympathy with Philip Hammond over the increase in NI contributions for the self employed as again this sector of the public have seen an increase in pension benefits without any increase in their payments.

    The other great taxation debate needs to be over my generation the over 65’s, as we use the NHS and the Social Welfare system the most and the situation is only going to get worse with our ageing population. We stop paying NI at a State Retirement age and enjoy the “triple lock”. The Chancellor needs to balance the budget by raising taxation and therefore my generation needs to be taxed more especially those that are higher rate payers like myself which might reduce the number of holidays we take but will improve the NHS and Social Welfare system. The problem is again this generation are mostly Tory voters!

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