Home ownership in the UK at 29-year low
Home ownership in the UK has dropped to its lowest level in 29 years as young people are ‘locked out’ of an increasingly expensive housing market.
Only 63% of people in the UK live in properties that they completely own or are paying a mortgage on. This is 8% lower than in 2003 when 71% of people lived in properties they owned.
The number of homeowners in the UK has drastically dropped.
Property prices are simply too high for young people
Young people are not buying homes because of soaring house prices, say critics.
David Orr, of the National Housing Federation, said:
“People in their 30s are seeing their chance of home ownership slip through their fingers as they struggle to save for enormous deposits and mortgages.
“We’re in danger of winding back the clock, with only a privileged few having any hope.”
Only a decade ago over half of 25 to 34-year-olds had a mortgage. This figure has dropped to only 33%.
Most young people (almost 50%) now rent privately, according to the English Housing Survey, which is double than the 21% in 2003.
Home owners outnumber mortgage borrowers for first time
On a separate note the drop in young people buying homes has resulted in there being more outright home owners that mortgage borrowers for the first time.
According to data collected in 2014, there were 7.4 million outright owners compared to 6.9 million with a mortgage. In 2013 the numbers were relatively equal.
David Hollingworth, of mortgage brokerage London & Country, said:
“This is a completely different property market to 30 years ago.”
“At one end, it’s very difficult for young people to qualify for a mortgage, due to tighter affordability rules and high prices. At the other, older owners have never seen interest rates so low and are naturally coming to the end of their mortgage terms.”
Duncan Stott, director of PricedOut, said:
“Unaffordable house prices have locked a generation out of homeownership.”
“From these trends we can forecast that within seven years there will be more households renting than owning and paying off a mortgage.”
“Unless we see action from government to get the housing market in fit shape for first-time buyers, we will inevitably see more and more working people stuck in the unstable private rented sector.”