The steady decline of home ownership and the social rented sector, together with the unassailable rise of the private rented sector in the wake of the credit crisis, have been confirmed in latest Government figures.
The new 2010-2011 English Housing Survey shows that in that period, 66% of households (14.5m) were owner occupiers, down 1% from the previous year and continuing a trend observed since 2007.
The social rented sector last year accounted for 17.5% (3.8m households) and the private rented sector for 16.5% (3.6m households).
Thirty years ago, there were over 3m more tenants in the social housing sector than in the private rented sector. Now the gap is just 200,000.
Last year, a total of 394,000 new households were formed in England – and most (68%) were private tenants, forming 268,000 of the new households. Just 14% were owner occupiers (55,000 households) and 18% were social renters (71,000 households).
One key difference is that couples with no dependent children were the most common type of household in 2010-11 in both the owner occupied and private rental sectors (35% and 43% respectively).
However, in the social rented sector, the most common type of household (24%) was a single person aged 60 or over. In the social sector, 17% of tenants were lone parents with dependent children, and 12% of tenants in the private rented sector had the same status. The figures compared to just 3% of owner occupiers.
Last year, private rent was around twice that of social rents (an average weekly £160 compared to £79). In the same period, 63% of social renters and 25% or private tenants received Housing Benefit.
Another key difference is in length of tenure: 54% of private tenants had been in their home for under two years, whilst 59% of owner occupiers and 43% of social tenants had been in their home for ten years or longer.
Grenville Turner, chief executive of Countrywide, the UK’s largest estate agency chain, said of the survey: “Successive governments have widely encouraged home ownership but the impact of the recession has led to a structural change in the property market.
“The impact of this has caused an additional 275,000 new tenants to flood the private rental sector in 2011 – a 24% increase on the previous year.
“Current demand levels indicate that there will soon be more people in the private rental sector than social housing, which will only add to the already saturated demand and supply imbalance in the market.”
The full report – which contains much information about overcrowding, occupancy patterns, energy use and decent homes – can be found at the link below.
https://www.communities.gov.uk/publications/corporate/statistics/ehs201011headlinereport
Comments
japanese houseprices are 40% lower than 1991
I expect the same could happen here as deflation takes hold
prices have gone up in the past but we have never been in such dire finacial circumstances ever before.
japan is the only real comparison
House prices double every 7 years, anyone not buying is a fool or a pauper!!!!!!!!!!
FBA - I was trying to give you some space, you're getting too tense of late. Plus I have been busy sat in the idiot corner with Rant - Can we move away from it now?
"You obviously can't grasp that concept either" You say to Dave.
He's aired his thoughts of the property market today. Your reply basically says "you" (FBA) will be fine and so will "your business" and then dismiss him, suggesting he is an HPC'er!
It really wasn't an expert reply. I'm not tarring you with the same brush, but I know of agents who play all sorts of tricks to get the short term advantage, not thinking of the bigger picture. You can guess what happens.
Anyway, anyone who disagrees with you isn't necessarily a HPC or it doesn't mean they "fail to grasp" something. They have a different view point, simples! You can't be right EVERY time!
Have a good weekend, I'm going back to idiot's corner ;)
rant person, just.
True if true, but you offered up an opinion. Shut it fella!
And those in the industry would do well to check whether someone is expressing an opinion or quoting a report from housing market insiders...
Rent rises are regional, like prices , here in the South East they are strong and rising, we have the highest occupation rates ever. Those not in the industry would do well to keep uninformed opinions to themselves so they do not look stupid-Rant.
nothing
"As long as 70 million people reside on our island they will have to live somewhere" .I agree with you (ouch this is becoming a habit)
So in areas where most of the work is
If
a) the cost to rent goes up and becomes unnafforadable,and due to low wage growth and high inflation
b) If buying a home remains unafforadable to many, due to lending multiple restrictions, deposit requirements and low wage growth, and
c) If the current owners in financially stretched homes are not forced to sell due to lender forbearance, and
d) more houses are not built due to the Nimby's
What happens?
Dear Mr Rant,
Have you ever played with a ballon that has lost most of its air?
The ENTIRE property market is much like this in its effect. If you squeeze it flat in one place, it pops up in another. No matter how much you try to flatten it all, it will always pop up somewhere else.
As long as 70 million people reside on our island they will have to live somewhere. They can buy or they can rent. Other than squating, I cant think of any other solutions, can you Mr Rant?
The solution may be to bring back the Nazis and start exterminating vast swathes of the population, how about all of the Welsh, or all of the Midlanders?. Another idea could be to have another bloody great world war, we could start with thr Falklands and progress it from there until we have 20 million dead. Would you like one of these options Mr Rant?
Until then..........
As long as the banks play silly buggers the landlord investors will be fine. If the banks stop playing silly buggers landlords will not be at risk.
Are you unable to grasp this Mr Rant?
Landlords are apparently not getting more money out of their tenants though, as reported on EAToday sister site LettingAgentToday:
Rent Rises Not Living Up To The Hype
http://www.lettingagenttoday.co.uk/news_features/Rent-rises-not-living-up-to-the-hype
Those who bought family properties in the last decade may also come to the end of their mortgage and be unable to release the equity by downsizing if owner occupancy continues to fall at 1% a year. Who are they going to be selling to?
I doubt that dave.
My business is estate agency. Our prices, business and efforts go where the market goes.
Volumes are in residential letting at present. If that changes to sales, so be it. Whatever the market does, we will be there doing 'agency'.
You obviously can't grasp that concept either.
Sales are steady, not rising not falling.
Lettings are going through the roof.
So! you purchased a house once? What an expert you became as a result of this experience, well done to you and everyone who sails in the ship that is in your head.
I love your style. it often makes me splutter with laughter into my coffee with some of your posts.
Nice one Dave.
I've owned property for over 20 years and have no mortgage..doesn't mean I don't have an opinion on this free internet discussion board
my kids and their friends are being marginalised from society and I think this is wrong
I think you are complacent and unable to see the wood from the trees..this attitude will haunt you in future years
Dave,
The EAT reading public will get your drift implicitly. As an individual you will not be investing in property as either a BTL investor, or for home ownership, to either upsize or downsize, at any point over the next few years,
You have no vision Dave. Readers will accept this, also implicitly (shame you can't).
in the dotcom boom people paid stupid money and shares were scarce..
until of course it all fell apart.
tulips from amsterdam was the same..then in one auction no-one turned up and the price fell 95% over a short period
what you are looking at here is totally unsustainable..and when it does go pear shaped buy to let investors with portfolios of 5-10 mortgaged properties will face bankruptcy
anyone who thinks it a one way ticket to riches is about to be shocked and dismayed
Fun Boy.....I agree with you..(see i do sometimes). I do see trouble ahead though.....rents like mortgages will become unaffordable for many then what happens?
Strange times indeed
True, so true.
Our rental team are 'rocking'. Everything listed goes, and at money you wouldn't imagine possible. It is a very strange phenomenon.
It does mean that people with money or good credit ratings who are able to finance purchasing property are in the perfect position to increase their wealth at the expense of those who cannot. (HPC'ers who rent are in this category).
Strange times