‘We never expect to be able to own our homes’
More than six in every 10 private and social renters never expect to buy a home, according to new analysis from housing investment and shared equity mortgage provider Castle Trust.
Figures in the latest Office of National Statistics English Housing Survey shows that three million social renters and 1.5 million people who rent from private landlords don’t believe they will ever buy a home.
And even those who do dream of buying a home, half – around 1.5 million – think it will be five years or more before they will look to buy.
Castle Trust’s analysis also showed that owner occupation in England has decreased by 200,000 from 14.6 million in 2008 to 14.4 million in 2012.
The number of private renters in England in 2012 increased to 3.8 million, an increase of 23 per cent from the 2008 figure of 3.1 million
Castle Trust chief executive Sean Oldfield said: “Many people are either unable to get on the property ladder or stuck in their current home despite interest rates still being at an all-time low.
“Schemes like the government’s Funding for Lending are helping to boost borrowing options but the market still needs innovative lending products.”
Around 2.8 million owner occupiers in England have lived in their current home for more than 30 years, suggesting they have not traded down on retirement to free up equity in their home.
And the median tenure for owner occupiers has risen from 11 to 13 years since 2008/09.
Mr Oldfield added: “The risk of rising mortgage rates is a major issue for homeowners with their finances already under pressure. Shared equity can play a major role in reducing risks, including the risk of going into arrears, by cutting monthly mortgage commitments.”