English Housing Survey shows home ownership rates steady
The latest English Housing Survey from the Department for Communities and Local Government has found that the number of households living in their own home is broadly unchanged on the year before, but still at a 30-year low.
In 2015-16, of the estimated 22.8m households in England, 14.3m or 62.9% were owner occupied, down from 63.6% in 2014-15 and down 8% since 2003.
The proportion of households living in their own home increased steadily from the 1980’s until 2003, when the peak was 71%. Since then the proportion has gradually fallen to its current level but is unchanged since 2013-14.
However, over the last two years, partly due to low mortgage rates which has enabled households to pay down or completely clear their mortgage, there are now more outright owners and fewer households with an outstanding mortgage.
In 2015-16, 34% owned their own home completely, while 29% had a mortgage. The balance tipped in 2013-14, when the proportion who owned their own home in England moved above the proportion who still have a mortgage. This change is also due to an ageing population, with large numbers of baby boomers reaching retirement age having paid off their mortgage.
However, among young people, less have a mortgage on their own home. 46% of people between 25 and 34 are renting, up from just 24% 10 years ago, illustrating how difficult it has become for first-time buyers to get on the housing ladder in many parts of England.
Private and social rental costs
The report found that the private rented sector with 4.5m or 20% of households remains bigger than the social rented sector of around 3.9m or 17% of all households in England and is up by 1m over the last 10 years. Over the last decade the number of households living in the private rented sector has increased and the number living in the social rented sector has dropped.
Of households living in the private rented sector the proportion that have children went up from 30% to 36%, equivalent to 945,000 more households with children living in private rental accommodation. However, the proportion of social renters who expect to buy increased, while there was no increase in expectations of households who rent privately.
This could be because, as the report notes, private renters spend more of their income on housing costs, 35% than social renters, 28% and those with a mortgage, just 18%.
In 2015-16, 59% or 2.6m households who rent privately expect to buy a property at some point in the future, compared to 27% or 1m social renters.
A Government spokesman said “New house-building and the number of first-time buyers are now at the highest level for almost a decade. But we know that there is more to do to fix this country’s broken housing market and to make Britain a country that truly works for everyone.”
Lib Dem Democrat leader Tim Farron said: “This government is failing an entire generation who are being priced out of the housing market.”
Read the report here