Home Ownership Declines

by Mark Johnston

The national centre for social research found that two thirds of non-home owners believe that they have no prospect whatsoever of buying a home at the current time.

Property owing Britain has now it seems come to a grinding halt, this is due to numerous things such as the credit crunch, a housing shortage and mortgage availability.

The impact of mortgage rationing has dampened many private renters house buying aspirations with only 22% of them expected to buy a home in the next two years compared with 28% that had been expected to do so three years earlier.

Many existing borrowers are being forced into giving up the homes that already have as they can no longer afford them, according to research.

The proportion of people owing their own homes has slumped to the lowest levels in a generation.

The housing market is expected to suffer another major blow in March this year with the ending of the stamp duty holiday for first time buyers.

According to the latest English housing survey, home ownership in England continues to gradually decline.

A government report in to the state of housing in England, in particular, showed that the proportion of households living in their own homes fell in 2010 to 2011 to 66% (14.45 million), from 67% in 2009 to 2010. Its lowest level since 1988.

The rate of owner occupation in the housing market has fallen for the sixth consecutive year and official figures suggest it has been in decline since around 2005, after reaching a peak of 70.9% in 2003.

This trend has gone hand in hand with a decline in council housing and a more recent surge in private renting.

Research has shown that 77% of all non-home owners still however aspire to owning their own home, but many younger people expect renting to become a norm.

With house buying increasingly out of reach, millions are forced to rent instead; therefore they are at the mercy of private landlords.

A survey revealed that the proportion of householders renting from private landlords has risen for the twelfth year in a row. The percentage of people who privately rent their property has grown to 16.5%, up from 10% a decade ago.

The private rented sector as a whole grew markedly over the period from 1995 through 1996 to 2010 and through to 2011.

Homelessness has too risen for the first time in eight years with 63,000 households accepted by councils as homeless in 2010 to 2011. Officials estimate 1,768 people sleep rough on any one night; however charities claim the figure is much higher than this.

Peter Tutton, a citizen advice debt and credit policy office, stated “the key issue in the housing debate is not whether home ownership is a good or bad thing. The real question is whether home ownership is affordable”.

The housing minister, Grant Shapps insist that the government is trying to help the incredibly high number of people who still want to own their own home.

In conclusion, for the next generation it seems that the dream of home ownership has never been further from becoming a reality.

Story link - Home Ownership Declines

Related stories to : Home Ownership Declines