The number of people renting privately from buy to let investors in the current economic climate continues to grow as government figures recently published in the English Housing Survey show that just 67.9 percent of English households now own their home, the lowest percentage since 1991.
Since 2001, an estimated extra one million households in England are privately renting, and the total now stands at around three million, according to the survey. Of these almost 60 percent said they hoped to be able to buy in the future.
But property experts are warning that a combination of high house prices, frozen salaries, the threat of unemployment and the unavailability of mortgage products means a huge number of people may never be able to afford to buy their own home.
Commenting on CLG's English Housing Survey, Simon Rubinsohn, RICS chief economist said: “The latest survey provides further evidence that the proportion of households choosing to be owner occupiers is continuing to decline.
“The peak year for owner occupation was actually back in 2003. Since then, private renting has become an increasingly important tenure with the buy to let boom significantly increasing the supply of this type of accommodation.
“Interestingly while the proportion of private renters looking to buy over the next couple of years has declined according to the report, this is not indicative of a diminishing desire to own property. There has been an increase in the proportion of private renters expecting to purchase a house over the medium term.
“However, unless housing supply increases substantially over the next few years, the likelihood is that many of those aspiring to buy a home will continue to find such a move out of their reach.
“Data released last week showed new housing starts to remain at historically low levels, suggesting that the imbalance between demand and supply is likely to remain a feature of the market in many parts of the country for some time to come.
“Even if there is some easing in prices later this year as mortgage costs begin to rise, it is unlikely that this process will continue unless the economy were to lurch back into recession, which is not expected.”
In a statement,
Tory housing spokesman Grant Shapps believes the English Housing Survey figures show that the Labour Government’s housing policy has been exposed as a failure. In a statement he said: “Home ownership is falling under Labour, with the lowest number of first-time buyers since 1974 and fewer homes being built than at any time since 1946.
