Originally published as a column for Inside Housing on September 5.
The decline of owner-occupation in England resumed in 2015/16 after a brief uptick in the previous year.
The English Housing Survey shows that owner-occupation as a whole fell below 63% to return it to levels last seen in 1985, when the Right to Buy and Margaret Thatcher’s drive for a property-owning democracy were in full flow. The ownership rate is now down eight percentage points on its peak in 2003.
However, even that conceals the full scale of the decline. Owner-occupation is made up of two very different groups – people who own their home outright and those who are buying with a mortgage – and the split between them has changed radically over time.
Here are some key points that I picked out from the English Housing Survey for 2015/16:
1) Owning’s rise…
Outright ownership is still rising as people who first took out a mortgage 25 years or more ago pay it off. From 25% of households (4.5 million) in Mrs Thatcher’s heyday, it has grown to overtake mortgaged ownership two years ago and reach 34% (7.7 million) in 2015/16.
Originally published as a column for Inside Housing on August 2.
As home ownership and social renting continue to decline, the astonishing rise and rise of the private rented sector continues.
But who is the sector housing and what are the consequences for tenants? Here are a dozen key points that I picked out from the English Housing Survey for 2015/16.
1) Overall growth
One in five of us – 4.5 million households – now rent from a private landlord. That is 2.5 million more than in 2000.
Growth continues to be fastest among young people as high house prices stop them buying and social housing is in short supply.
The proportion of 25 to 34 year olds renting from a private landlord has increased from 24% to 46% in the last ten years. As recently as 1991, just 12.9% of 25-34 year olds were private tenants.
That figure is for households, so it could well mask an even stronger growth in the number of individual young people renting as more of them share.
The average private renter household reference person (HRP – the oldest or highest-earning person in the households) is 40, making them much younger than social renters (52) and owner-occupiers (57).
However, since the financial crisis private renting has grown among all age groups, with sharp increases also seen among the 35-44s, 45-54s and 55-64s.