Home Ownership In New Fall As Renting Rises
The number of private rental households has rocketed while owner-occupied households
have continued to fall, says the latest English Housing Survey.
Covering 2010-11, the survey says the number of private rental households now stands at 3.62m, compared with 2.45m in 2005.
There are 14.45m owner-occupied households, compared with a peak of 14.79m in 2005.
Overall, in 2010-11, 66% of households were owner occupiers, 17% were private renters and 17% were social tenants.
London had the highest proportion of private tenants at 25% and the lowest proportion of owner-occupiers at 51%. The percentage of social tenants was highest in London and the North-East, both 24%.
The biggest shift towards renting is in the 16 to 34-year-old age group. In 2010-11, 36% of this age group were in owner occupation, 18% were social renters and 46% were renting privately. This compares with 1991, when 60% of this age group were owner occupiers and 18% were renting privately.
The average household size for all households was 2.3 people, with 29% of all households containing just one person.
Owner occupiers were richer than private tenants, but paid less on a mortgage than tenants did on rent. An owner-occupier household had an annual income of 40,900 compared with 29,000 for private tenants. Owner occupiers made average weekly mortgage payments of 143, compared with average weekly rent of 160.
On average, weekly mortgage payments were 19% of home owners income, while weekly rent payments were 43% of tenants income.
Private renters had the highest housing costs of all three groups owner occupiers, private tenants and social tenants.
The English Housing Survey also notes a significant fall in the number of households with a mortgage from 8.3m in 1996-97 to 7.1m in 2010-11. There has also been a major change in the type of mortgage: in 1996-97, 33% of mortgages were repayment loans, while in 2010-11 this had increased to 73%. Only 3% of mortgages were interest-only in 1996-97, but the proportion had increased to 13% in 2010-11.
The survey also questioned private tenants about deposit protection. Despite it being a legal requirement for the last five years, only 47% of private tenants said their deposit had been protected, while 24% said their deposit had not been protected and 28% did not know.
The majority whose deposits were protected had the money returned in full (70%), but 17% received only part of their deposit back and a further 12% received none of their money back. While more than half of these were given reasons, 40% were not told why their deposits were withheld.
The survey found that 59% of private tenants and 23% of social tenants expect to buy a home at some point, and 16% had considered buying a home in the previous 12 months. However, there was not much confidence about property prices: in nearly every region other than London, a larger proportion of households thought their property value had decreased rather than increased in value over the previous year. Around 1% believed they were in negative equity.
The survey also looked at housing stock in England, consisting of a total 22.4m dwellings, with private rented houses tending to be older. It found that 52% of private rented stock was built before 1945, including 40% before 1919. In comparison, 21% of owner-occupied stock was built before 1919.
Disrepair levels were highest in the private rented sector, and across all types of housing, dampness was a problem in 7% of dwellings. However, in the private rented sector, dampness problems affected 13% of homes: while higher than average, this was noticeably down on the 21% recorded in 2001.
In terms of energy performance, social housing did better than either owner-occupied or private rented homes. Homes in the private rented sector increased their energy performance to the point that they are almost identical with owner-occupier homes. All told, the survey estimates that 17.8m dwellings could be upgraded, at an average cost of 1,100.
by: Angels Media
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