Home ownership in the UK is in a crisis situation due to the economic downturn, with the proportion of people owning their own home falling to the lowest level since 1988. A lack of mortgage finance and worries about job security and affordability are preventing first time buyers from getting onto the housing ladder, resulting in increasing exclusion from home ownership.
UK home ownership lower than Bulgaria and Romania
A report published by the lobby group the Home Owners Alliance (HOA) has found that owner-occupation in the UK has fallen to its lowest level since 1988. The report says the owner-occupation rate peaked at 69.7 per cent in the UK in 2002, falling to a current rate of 64.7 per cent. That rate is the 17th highest among the twenty-seven EU countries, and lower than that of Bulgaria, Ireland, Italy and Romania.
online payday cash advance, payday loans cash advances, online payday cash loan,
This is despite owner-occupation remaining by far the most desired form of housing tenure in the UK. According to the latest British Social Attitudes survey, the vast majority of Britons want to own their own home.
Housing shortages, high house prices and a lack of high loan to value mortgage finance are creating real problems for millions of households across the UK.
There are now millions of households locked out of the property market and rising rents mean these households are unable to save the deposit that they need to get a foothold on the property ladder.
The HOA's report - which uses data from the Department for Communities and Local Government and its counterparts in Wales, Scotland and Northern Ireland - shows that London is the greatest affected. Fewer than half of properties in the city are now owner-occupied, the lowest level since figures for the capital began in 1991.
Many experts believe the decline in homeownership is depriving a generation of the chance to own the roof over their head, shattering their dreams and aspirations. It is preventing millions of people from living the sort of lives they want to. Buying your first home is returning to being a privilege of an elite group of wealthy individuals.
The social consequences of falling home ownership are profound and long-lasting and include a rise in poverty among pensioners and children, more social inequality and more people facing life in insecure rented accommodation.
The housing market, in it's current state, is creating serious difficulties for a generation of priced-out first-time buyers. House prices remain at levels way out of reach for the majority of potential buyers, leaving many trapped in the rental market, where ever-increasing rents make it a real challenge to save up for a deposit. While house prices remain so unaffordable it is inevitable that home ownership will decline.
Renters are currently stuck in a vicious circle. Recent figures have shown that the average monthly rent across England and Wales has hit an all time high, meaning that households are spending more of their disposable income on their rent.
This means that they are even less capable of putting aside enough money to afford the 10-15 per cent deposits that many large mortgage lenders demand.
Need Money? Let Me Help You
Take advantage from the innovative CreditGraph lending technology today.large cash loans bad credit
Get Emergency Cash You Need! Not Check Your Credit. Do Not Worry. Get Approved Fast. Fast Apply Now!
No comments:
Post a Comment