by Mark Johnston
Home Ownership at its Lowest.
According to a report published by lobby group, the Home Owners Alliance, home ownership is now in ‘crisis’ in the UK.
Government figures have revealed that the level of home ownership has fallen to its lowest level since 1987. The percentage of owners has dropped for the last 7 years.
The rapid increase in the cost of property in the run up to 2007 coupled with a subsequent reduction in the availability of credit has priced millions of would be buyers out of the market.
The average cost of buying a home in the current climate has rocketed to six times higher than the average full time salary. Therefore just 65.3 per cent of households in England and Wales are home owners.
A string of lenders have slashed their rates in recent months and the number of mortgages on the market has also increased since the funding for lending scheme was introduced last year.
However, first time buyers still need to find a deposit of at least 20 per cent in order to obtain a mortgage.
A survey published by the department for communities and local government showed that more households in England and Wales are renting theri homes privately.
The number of families who private rent at the moment has risen to around 3.8 million.
Recent research from Rightmove, the property search website, suggests that around three fifths of private renters are trapped as they can not afford to make that jump on to the property ladder.
Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors (RICS), said “the figures provide further evidence of the shift away from owner occupation in favour of the rental sector”.
Sky high rents mean many households are unable to save the funds needed to get a foot hold on the property ladder.
As saving for a deposit to buy a home becomes increasingly out of reach for many would be buyers, many have no choice but to live in rental accommodation for years on end.
Campbell Robb, chief executive of Shelter, the housing charity, suggested “with the security of home ownership harder to find than ever, more and more have no choice but to live with the insecurity and expense of private renting”.
Owner occupation remains by far the most desired form of housing tenure in the UK.
Therefore, some 2.2 million households said that they expected to buy a property at some point in the future, however 45 per cent of these households thought it would be at least 5 years before they do so.
Duncan Scott, a spokesman from the first time buyer campaign group Priced Out, stated “until house prices move back to a level that first time buyers can afford home ownership will continue to wilt away “the decline in home ownership is depriving a generation of the chance to own the roof over their heads”.
In conclusion it seems that recent figures have taken the growth of ‘generation rent’ to a whole new level.
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