Homeownership Falls to Lowest Level for 29 Years
The Department for Communities and Local Government has released data from the English Housing Survey revealing that of the 22.6 million households in England during 2013/14, 63% of them were occupied by the owners. This is a fall of 2% from the year before and means that homeownership is at the lowest number it has been at in 29 years.
It revealed the desperate situation for young people trying to get on the property ladder. The figures show that people falling in the age bracket of 25 to 35 are at present more likely to be renting their home out than buying their own.
In 2013-14, 48% households were occupied by people from 25-34 renting from a private landlord which is a 3% rise from the previous year. It has more than doubled in amount since 2003-04 when that figure was at only 21%.
However, the figures did show the amount of people that own their property outright are now greater than those homeowners with a mortgage. The survey showed that 7.4 million people were outright owners of their property and 6.9 million had a mortgage loan.
The charity Shelter reacted to the data by stating it was ìa sign that we are moving closer to becoming a nation of renters.î This comes after increasing outrage from such groups that the government isnít doing enough to help young people purchase properties.
Their chief executive, Campbell Robb stated: ìThese figures confirm what millions of people across the country are feeling: a home of their own has become a distant dream, no matter how hard they work or save. The shortage of affordable homes is leaving young adults with no choice but to remain stuck in their childhood bedrooms, or face decades paying out dead money to landlords. This canít go on.î
In a statement released by the English Housing Survey they accounted for the higher amount of people renting. It stated: ìThroughout the 1980s and 1990s, the proportion of private sector households stayed steady at around 10%. However, the sector has undergone sharp growth since then and has doubled in size since 2002, driven by a number of factors.î
ìIn the late 1990s rent controls were removed, and assured short-hold tenancies became the standard, giving greater flexibility in the length of tenancies. Lenders also introduced buy-let mortgages at around the same time.î