Fewer Younger People on the Mortgage Ladder, Survey Shows

About The Authors

30th July 2014 13:26 - Housing

The number of young people who own a mortgage has decreased in the last five years, according to figures published by the Department for Communities and Local Government.

The research – The English Housing Survey – estimated there are approximately 22 million households in England, of which two thirds (65%) are owner occupied, one fifth (18%) are privately rented and 17% are socially rented.

According to the report, in 2008/09 just over one fifth (21%) of respondents aged 35 or below had a mortgage, in the survey’s latest edition (2012/03) though, this figure dropped below the one fifth mark (18%).

Correspondingly, the amount of 25 to 34 year olds who privately rent has increased by almost one sixth over the same timeframe – 31% in 2008/09 compared to 45% in 2012/13.

Furthermore, owner occupiers are estimated to spend one fifth (20%) of their income on their mortgage, notably less than private renters (40%) and social renters (30%).

On average, mortgage holders repay approximately £149 per week; however, this varies for interest only mortgages (£120) and repayment mortgages (154).

Private renters, on the other hand, shell out an average of £163 a week for their accommodation – a fractional decrease from 2011/12’s figure (£164), but a £10 increase on 2008/09’s average (£153).

However, despite their pricier accommodation fees, private renters are said to earn, on average, less than owner occupiers. According to the survey, three in 10 (30%) private renters earn in excess of £700 a month, compared to almost half (47%) of mortgage owners.

In addition, going off the study’s findings, home owners (95%) are visibly more satisfied with their accommodation than social (81%) and private (84%) renters.

More than six in 10 (61%) private renters anticipate they will own a house in the long-term, compared to the one quarter (27%) who expect to still be renting. Furthermore, four fifths (80%) of social renters imagine they will be on the mortgage ladder in the long-term, opposed to one sixth (16%) who plan to remain renting.

Sign up for free insights from your sector…

Support Us...

We hope that you have found this article useful. This section is freely available for all to use. Please help support it by liking us or following us on our social media platforms:

Share this article...

For updated Housing insights please follow us on @DJS_Housing or use our RSS feed

Other Housing Research Findings

Other Latest Market Research Insights

© DJS Research 2021