Cookies on the this website
We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on this website. However, if you would like to, you can change your cookie settings at any time.
Continue

New to PropertyWire?

Welcome, and thank you for visiting our website.

PropertyWire is the leading publication for property investors and industry professionals interested in the world of international property investment.

Our aim is to give you intelligent commentary and analysis on the world of retail and commercial real estate.
If you've enjoyed what you've read so far why not sign up for our FREE property alert and online magazine PropertyWire Confidential.

Every week the PropertyWire team sends out a hard-hitting newsletter packed with news and analysis of the top stories plus the best investment opportunities on the market. We always look at the bigger picture like the Euro Crisis, and explain how this will affect YOUR investments.


Ask me later
No thanks

Tue
Oct 21st
Lost Password? Register
Home arrow News arrow Europe arrow Home ownership in England falls to lowest level for a quarter of a century

Home ownership in England falls to lowest level for a quarter of a century

Friday, 08 February 2013
Image
Home ownership in England has fallen to its lowest level for 25 years as the economic downturn and lack of lending means many cannot afford to buy.

The figures from the annual English Survey of Housing, published by the Department for Communities and Local Government, reveal the growth of the private rented sector which is now at its highest level since the early 1990s.

It means that younger people are being priced out of the market. Indeed the average home cost £50,000 in 1988 and is now £163,000, six times higher than the average salary.

The percentage of households who own their own homes has dropped every year for the last seven years. In the 2011/2012 financial year some 65.3 of households were owner occupiers, down from the peak of 70.9% in 2003.

The figures also show that the number of families who are privately renting their home has risen to its highest level since 1960s to 3.8million, equalling that of the social rented sector.

Average weekly rents in the private rented sector continued to be well above those in the social rented sector at £164 per week compared with £83. While mean rents have increased in both sectors since 2008 to 2009, private rented sector rents showed no significant change from 2010 to 2011.

But home ownership is still regarded as desirable. Nearly 60 % of people who privately rent their home hope to buy their own home at some point in the future.

And only one in 10 home owners are under the age of 35, a sign of younger people are not able to find enough money for the high level of deposits needed for first time buyers.

Of those who own their home without a mortgage, nearly 60% are aged 65 and over, with many benefitting from the house price boom having bought their home decades ago.

According to Simon Rubinsohn, chief economist of the Royal Institution of Chartered Surveyors the figures provide further evidence of the shift away from owner occupation in favour of the rental sector.

‘RICS believe these broad trends are set to persist. Although the Funding for Lending Scheme has raised the availability of finance for first-time buyers, required deposits are still historically high limiting accessibility for many,’ he said.

‘Meanwhile, the scaling back in government grant will continue to impact on the volume of socially rented property on offer. RICS feel the one tenure that is set for further growth is the private rented sector which within a few years could house one in five households,’ he added.


BOOKMARK THIS PAGE (What is this?)     Digg!Reddit!Del.icio.us!Google!Live!Facebook!StumbleUpon!Newsvine!Furl!Yahoo!

 
More Recent News
Earlier News
To see all the latest news articles in our monthly online magazine, Property Wire Confidential, sign up free here



Europe: Top Headline

Non home owners in the UK despair at lack of affordable housing to buyNon home owners in the UK despair at lack of affordable housing to buyBritish house hunters feel increasingly disenfranchised by the lack of affordable housing, new research has found.



West Tower

West Tower

West Tower

Car park

West Tower

home rental guide

Limousin Guide

Barratt Homes

Limousin Guide

Search for Properties:

Feature story

Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.

 

Company news

Real estate franchise Century 21 reports surge of new offices in UK

Property franchise Century 21 UK has announced the opening of a number of new offices around the country.

Finance Update

Nationwide resumes access to Help to Buy for home movers

Nationwide Building Society has announced that it is resuming access for home movers looking to participate in the government’s Help to Buy equity loan scheme from Wednesday, 24 September 2014.

Features

Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.

 

Newsletter

Subscribe to our weekly newsletter and stay updated on the property market trends.
Subscribe now >>

Subscribe to our Europe property and real estate news feed (RSS)