Posts with tag: home ownership

ONS figures show changing face of UK housing market

Published On: April 7, 2016 at 12:01 pm


Categories: Property News

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Interesting data released by the Office of National Statistics (ONS) shows the economic downturn has shifted the demographic of home ownership in Britain.

Results from the latest economic review report from the ONS show the proportion of households who privately rent their home increased sharply following the downturn.


Those renting from a private landlord increased from 6% to 11% in the twenty years from 1988 to 2008. However, there was then a jump to 16% in the six years to 2014.

In contrast, the proportion of households owning their property increased slowly from 56% to 71% between 1981 and 2008. This figure then fell to 67% by 2014.

The fall in homeownership, coupled with the rise in private renting, reversed a three-decade trend of increasing numbers of home owners. The ONS report shows that this partly reflects tighter mortgage lending and the performance of house prices during the recovery period.

What’s more, the report shows that these features have assisted in cutting the fraction of households owning their own home with a mortgage. This has fallen from 43% in 1991 to only 31% in 2014.


While trends in homeownership have begun to reverse, the impact on specific groups of the population have been greater. The number of people choosing to stay living with their parents for longer has increased substantially, with patterns in tenure amongst independent property owners also altering.

Numbers of young people living in privately rented accommodation have risen massively both since the economic downturn and in the last decades. In 1987, only 9% of people aged between 26-30 rented. However, this figure increased to 19% by 1997, 30% by 2007 and 39% in 2014.

Nearly one-third of those aged between 31-35 privately rented accommodation in 2014, with one in five people aged between 37 and 41 renting.

ONS figures show changing face of UK housing market

ONS figures show changing face of UK housing market

Fall in ownership

A recent rise in private rentals has been driven by the sharp fall in home ownership and the lower number of mortgages being taken out. Between 1977 and 1987, individuals living in a property with a mortgage increased. However, in the next two decades, the proportion of young people of these properties decreased, but the mortgage owning population between 45 and retirement age increased. This reflects that many purchasers between 1977-87 were youngsters who had now matured.

Differences recorded between 2007 and 2014 are alarming. The report highlights the prevalence of mortgagors is presently lower than in 2007 for every age group below 55.

It shows that the increase of private rentals has been particularly noticeable amongst 21-25 year olds. Proportions of renters in this age group increased from less than 20% in the 1980’s to over 60% in 2014. Smaller percentages of these groups live in mortgaged homes than in any time since records began.

Rent by regions

In London, rent accounted for 34% of disposable income for renters during 2014, in comparison to just 15% for those in the North East. The South East and West saw ratios of renters above 25%, with the East Midlands, Yorkshire and the Humber and Northern Ireland below 20%.

According to the report, the figures reflect movements in the prices of rent across regions. Rents in the capital and South East have become unaffordable, while those in the North are much cheaper.



Home ownership drops for first time in a century

Published On: June 24, 2015 at 11:30 am


Categories: Landlord News

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The latest figures from the Office for National Statistics have indicated that home ownership in England and Wales has dropped for the first time this century.

A substantial trend change was recorded between the years 2001 and 2011 in homeownership and renting. In 2011, the proportion of owned properties fell by 5%, which was the first fall recorded in 100 years. As a result, home rents have increased, particularly amongst young people.[1]


In 2011, 64% or 15 million of the 23.4 million homes in England and Wales were owner occupied, showing a decline from the 69% in 2001. This lead to a rise in the proportion of rented households from 31% to 36%, especially in the private sector where rentals increased from 12% to 18%. Social rented households remained fairly steady, falling from 19% to 18%.[1]

Typically, renters were found to be younger and less likely to be in full-time employment. 87% of people aged between 16-24 were living in rental accommodation, in comparison to just 24% of those aged between 65-74.[1]

Home ownership drops for first time in a century

Home ownership drops for first time in a century


TUC general secretary Frances O’Grady feels that successive governments have neglected housing policy. She said that as a result, ‘we now have the most expensive and dysfunctional housing system in Europe, with millions of people living in often sub-standard private rented accommodation.’[1]

‘A generation of young people face the prospect of never owning their own home,’ she continued. ‘There are no longer any areas in the South of England where average house prices are less than five times the average wage.’[1]

Concluding, O’Grady noted that, ‘with the Government able to borrow at rock bottom rates it needs to get out its cheque book and start building. Investing in house building will pay for itself and generate thousands of jobs and apprenticeships.’[1]





Those in Their 30s Might Never Move House Again

Published On: April 10, 2015 at 4:13 pm


Categories: Property News

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Those in their 20s and 30s in the UK will own half as many properties in their lives as their parents, research has found.

This age group will own an average of 1.7 houses in their lifetime, compared to 3.2 for the over-50s. These figures were revealed by a study from LV= home insurance, who also discovered that a third of homeowners are living in homes that are too small for them but they cannot upsize.1

Around a quarter of survey respondents said that they are unable to save up for a deposit on a bigger house, and a sixth are waiting for property prices to fall before even considering moving.1

Experts say that rising prices, which have caused higher Stamp Duty, legal fees and estate agent costs, as well as a housing shortage and harsher mortgage lending are to blame.

Lots of families are staying in their homes, but deciding to extend. Moving house has become so difficult that many respondents say they are in their forever home, including one in five of those in their 30s.1

Those in Their 30s Might Never Move House Again

Those in Their 30s Might Never Move House Again

A different report revealed that the affordability of properties in UK cities has worsened over the past year and is currently at levels last found in 2009. The typical price is now over six times the average annual income.

LV=’s Selwyn Fernandes says: “While owning your own home was achievable for the previous generation, it is an impossible dream for many today. Rising house prices and strict lending criteria are now not only preventing people from buying their own home, but they are also stopping many homeowners from moving, forcing them to modify their homes instead.”1

Paula Higgins from the HomeOwners Alliance, also comments: “This survey suggests many are stuck in homes which may be unsuitable because they cannot afford to move.

“In different stages of your lives, you have different needs. You may need to move closer to your place of work, or to good schools, or nearer to family. You may want more green space or a more adaptable home. But lots of people are finding they are stuck in their first homes, which they struggled to afford in the first place.

“Transaction costs, changes to mortgage lending criteria and, critically, a woeful lack of new homes being built puts homeownership, and moving up the ladder, out of the reach of many.”1

The average property price in cities has increased from £182,000 to £195,000 between 2014-2015.1

Lloyds Bank found that Oxford is the least affordable city in the UK, followed by Winchester, Cambridge, Chichester, Brighton and Hove, Bath, and London.

The most affordable is Stirling in Scotland, with Londonderry in Northern Ireland closely following. Just behind are Lancaster, Bradford, and Hereford.

The highest house price growth since 2005 is in Aberdeen, due to their sharp property boom. London has experienced the largest growth since 2010.

Lloyds Bank’s Andy Hulme concludes: “House price rises in the past two years have resulted in a deterioration in home affordability in the majority of UK cities, and generally widened the north-south affordability divide.”1