Home ownership drops for first time in a century

The latest figures from the Office for National Statistics have indicated that home ownership in England and Wales has dropped for the first time this century.

A substantial trend change was recorded between the years 2001 and 2011 in homeownership and renting. In 2011, the proportion of owned properties fell by 5%, which was the first fall recorded in 100 years. As a result, home rents have increased, particularly amongst young people.[1]

Drop

In 2011, 64% or 15 million of the 23.4 million homes in England and Wales were owner occupied, showing a decline from the 69% in 2001. This lead to a rise in the proportion of rented households from 31% to 36%, especially in the private sector where rentals increased from 12% to 18%. Social rented households remained fairly steady, falling from 19% to 18%.[1]

Typically, renters were found to be younger and less likely to be in full-time employment. 87% of people aged between 16-24 were living in rental accommodation, in comparison to just 24% of those aged between 65-74.[1]

Home ownership drops for first time in a century

Dysfunctional

TUC general secretary Frances O’Grady feels that successive governments have neglected housing policy. She said that as a result, ‘we now have the most expensive and dysfunctional housing system in Europe, with millions of people living in often sub-standard private rented accommodation.’[1]

‘A generation of young people face the prospect of never owning their own home,’ she continued. ‘There are no longer any areas in the South of England where average house prices are less than five times the average wage.’[1]

Concluding, O’Grady noted that, ‘with the Government able to borrow at rock bottom rates it needs to get out its cheque book and start building. Investing in house building will pay for itself and generate thousands of jobs and apprenticeships.’[1]

[1] http://www.propertywire.com/news/europe/home-owners-england-wales-2015062310661.html