LONDON — Home ownership in England has fallen to its lowest level for 30 years, according to a government study, while the private rental sector has doubled in size since 2004.
Just under 63% of homes were inhabited by owner-occupiers in 2016, figures from the English Housing Survey showed, which is the lowest level since 1985.
The combination of a housing shortage and years of near-zero Bank of England interest rates have sent house prices soaring, and made stumping up the money for a deposit more difficult.
The private rental sector has boomed as a result, with almost half of all people in England aged 25 to 34 paying a landlord. Around 250,000 private renters entered the market in 2016, with the sector now accounting for 20% of all accommodation.
In 2016, the average private rent in London was £300 per week, about twice the average rent outside London, which was £153 per week.
Here is the home ownership chart:
Since 2013-14 the proportion of people owning their homes outright has been higher than those paying a mortgage.
“The increase in the number and proportion of outright owners is at least partly explained by population ageing, with large numbers of baby boomers reaching retirement age, paying off their mortgages and moving into outright ownership,” the report said.
Last month the government released its plans to tackle the imbalances in the country’s housing market, including proposals to help small-to-medium size home builders to help construct 250,000 new homes a year.
In a White Paper titled “Our housing market is broken,” Sajid Javid, the Communities and Local Government Secretary, said: “The housing market in this country is broken, and the cause is very simple: for too long, we haven’t built enough homes.”
“Soaring prices and rising rents caused by a shortage of the right homes in the right places has slammed the door of the housing market in the face of a whole generation.”