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Rental sector increases as 'young adult owner' numbers plunge

Analysis of the government's latest English Housing Survey figures shows that there’s been a further decline in the home ownership rate to 62.9 per cent - the lowest recorded since 1985.

The data also reveals that just 38 per cent of young adults - those between 25 and 34 - own their homes. This is actually slightly larger a proportion than in 2013 but still represents a reverse from a decade ago when this age sector typically comprised of first time buyers.

The data comes in an analysis of the survey’s findings by the Nationwide building society.

“While the last couple of years have seen a slight improvement in the proportion of young adults owning their own home this remains considerably lower than was the case 10 years ago. The data also reveals a significant fall in home ownership rates amongst those aged 35 to 44 to just 56 per cent, down from 74 per cent in 2006” explains Robert Gardner, chief economist at the Nationwide.

“The counterpart to this trend has been robust growth in the private rental sector, with 20 per cent of households in England now privately rented - that’s a record high, up from 12 per cent 10 years ago. The number of privately rented households has increased by more than 75 per cent over the past decade and now stands at 4.5 million” he says.

However, he says that while it’s no surprise that many younger people have to or choose to rent, over the past decade the number of privately rented households in the 45 to 54 age group has nearly tripled to around 700,000.

“It’s unclear what is driving the increase in private renting amongst older households” says Gardner. 

“However, it’s interesting to note that these age groups have also seen a decline in the proportion of people owning with a mortgage and an increase in those owning their homes outright. This suggests a growing divide between property ‘haves’ and ‘have-nots’.”

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    In 2001 the population of the UK was estimated to be 59.1 million with 4.9 million (8.3%) foreign born. By 2011 the population of the UK had increased by 4.1 million to 63.2 million with the foreign born population at 8 million (12.6%). In 2015, the population of the UK was estimated to be around 65 million.

    These are staggering statistics. It’s taken the whole of mankind's existence for the country’s numbers to hit 59.1 million and then in less than 15 years it’s shot up by another 10%. It is estimated that net migration plus births to foreign-born parents has accounted for 85% of population growth since 2000!

    Now, 1 person out of every 8 in this country is due to immigration and right now, just under 13% of our population is made up of people born outside the UK.

    Mostly the immigrants cannot get mortgages. Is it any wonder that we have more renters than we used to??? This is not rocket science!

  • Brit Sixteen Sixty Four

    I actually blame buy to let buying up all the first time buyer stock and holding onto it clogging up the market and pushing prices up. Good job the government is removing half the tax relief to even up the field.

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    Well there's plenty of FTB stock around here. Loads of it and at very good prices so clearly it hasn't all been bought up. And of course the London School of Economics has shown that the number of times a landlord and FTB compete is actually tiny. So your theory doesn't really hold any water does it?

    What has pushed prices up is an imbalance of supply and demand. Demand is from people needing homes. Take landlords out of the equation the demand is still there. Take the people needing homes away and it is a totally different story.

    Indeed there is not one piece of real evidence to support your beliefs. Not one survey, not one piece of research - nothing.

    Still, not to worry. The Chinese are moving in now.

     
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    Please do share your research with us as it contradicts the finding of reputable independent research organisations, and Governments own statistics publish in the English Housing Survey.

    Far from clogging up the market Landlords provide investment in new development by buying off-plan which provides the seed funding for development to proceed. They bring derelict houses back into use, and covert overly large properties into HMOs or smaller flats.

    BTW mortgage interest is a legitimate business expense not a relief. If this measure was applied to all businesses the expansion of business in the UK would dry up overnight

     
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    Oh dear 1664, you aren't really up to this, are you? Why did the LSE say only around 9% of transactions attracted bids from both types of buyer - do they not know as much as you?? And why did the English Housing Survey say that 83% of all new dwellings were provided by the PRS between 1996 and 2013 - using the wrong data were they?! And how do you explain (clue: you can't) that FTB numbers have doubled in 6 years from 168,000 in 2010 to 336,000 in 2016 - held back by landlords they certainly are not. (Another clue: this was mainly before the tax changes were announced). Do get your facts straight if you're going to argue with the grown-ups, there's a good boy.

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