Britain still ‘a nation of would-be home owners’
Most people want to own their own homes, despite the state of the economy and the effects of the credit crunch.
Eight in ten people hope to be owner occupiers in 10 years’ time, with three quarters wanting to be in this position in the next two years, according to a YouGov survey for the Council of Mortgage Lenders (CML).
The CML found that the aspirations of under-35s are much higher than current owner occupier levels among this group, and it is “far from clear whether and how people will achieve their home ownership goal”.
Achieving the home ownership dream has become more difficult for people, and is likely to remain so, especially for the young. Bob Pannell, CML
Home ownership has declined from 70 to 65 per cent in the past decade. The survey shows there has also been a fall in those hoping to own a home, although this is still what most people aspire to.
Recession
The double-dip recession and the eurozone crisis have caused lenders to tighten their borrowing criteria, making home ownership an impossible dream for many at the moment.
The survey of 2,000 people reveals that most people who are privately renting or sharing with family and friends are under 35, with 54 per cent keen to become home owners in the next couple of years. But only a third of those expect this to happen.
Bob Pannell, CML chief economist said: “The results clearly show that the British love affair with home ownership is far from over. But achieving the home ownership dream has become more difficult for people, and is likely to remain so, especially for the young.
“We need to ensure that good quality housing is available in a variety of different tenures, and that the growing private rented sector represents an attractive choice for those who do not want, or cannot attain, home ownership.”
The private rental sector saw a boom in 2011, with soaring rents as people struggled to get on to the housing ladder.
The study found that nearly half of those who are currently renting privately hope to become home owners in the next two years, rising to three quarters in the next 10 years.
Of those who completed the survey, 65 per cent are home owners.