HOMEOWNERSHIP IN ENGLAND AT 29 YEAR LOW AS PRS SOARS!

Homeownership in England is at a 29 year low while the proportion of England’s households in the private renter sector (PRS) has soared to 19%.

Published by 24dash – the UK’s most up-to-date social housing and public sector news website – latest figures show that home ownership has declined for the 11th year in a row with only 63% of England’s households now living in homes they own outright or with a mortgage, the government’s English Housing Survey (EHS) has revealed.

The statistics have also revealed that, for the first time there are more outright homeowners than those owning with a mortgage.

The EHS shows that the younger ‘priced-out’ generation is being hit the hardest, as 10 years ago 55.6% of 25-34 year olds owned a home with a mortgage but the figure has now dropped to just 33.7%. Over the same period, the proportion of 25–34 year olds privately renting has more than doubled, rising from 21% to 48%. 

David Orr, chief executive of the National Housing Federation, said:

“People in their thirties are seeing their chance of homeownership slip through their fingers as they struggle to save for the enormous deposits and mortgage payments, no matter how hard they work. As house prices continue to rise we’re in danger of winding back the clock on homeownership, with only the privileged few having any hope of affording it.  

“At the moment people who can’t buy a home have little or no choice but to rent privately going from one short-term let to another at an ever escalating cost. We believe that everyone should have a home they can afford, which means having more affordable homes to rent or buy through shared ownership and a private rental market that’s fit for purpose.”

Responding to the figures, Alex Hilton, director of Generation Rent, said:

“The growth of the PRS is accelerating, and with poor conditions, expensive rents and little security, that’s not because it’s an attractive place to live. Tenants will only escape the rent trap if government builds much more social housing, but in the meantime we need rent control, secure tenure and decent conditions to make private renting a better place to live for those stuck there.” 

According to the British Property Federation (BPF), the EHS’ figures highlight the need for a “strong and stable purpose-built PRS”.

The survey shows that in 2013-14 almost half (48%) of all households aged 25-34 rented privately, up from 45% in 2012-13. The proportion in this age group living in the private rented sector has more than doubled from 21% in 2003-04. Over the same 10 years, owner occupation in this age group dropped from 59% to 36%.

Source: Read the full story at 24dash.com