Author Topic: Home ownership set to decline  (Read 3695 times)

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Philofacts

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Home ownership set to decline
« on: June 02, 2011, 09:45:17 am »
The decline in home ownership has already began.
At its peak, home ownership levels were 71% in 2003.  Since then it has been declining at a rate of 0.5% a year.
In 2010 home ownership was at 67.5% - the same level it was on 1991.

There are 3 main reasons for this:
Houses are still very expensive. Over time figures suggest that the average home should be worth about 3.5 times the average salary. Current prices are still way above that multiple.

The decline in government subsidies - such as mortgage interest tax relief where the government effectively paid part of your mortgage was abolished 10 years ago. Rising Council Tax and Stamp Duty mean that now the government is, in effect, penalising home ownership.

Reduced mortgage availability. In Britain the average deposit now required by a first-time buyer is around £26,000. A large sum that will restrict home ownership to fewer people.
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The Brickkicker

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Re: Home ownership set to decline
« Reply #1 on: June 28, 2011, 10:30:09 am »
I agree ...........and when you factor in

Bank's lending policies
The inability of young people to raise the deposits required
The slowing down of housing association builds
The huge sums student will owe when they leave university
and low interest rates

then the not so hard to pin down factors such as confidence .....

then I think that the Thatcher bubble is burst and during the next ten years we are going to see a rise in rentals and a decline in home ownership.
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Banjo

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Re: Home ownership set to decline
« Reply #2 on: June 29, 2011, 10:28:11 am »
A slowing of building new housing association homes wont effect "home ownership"  unless you mean shared equity.