Leeds Building Society has analysed some key national, regional, and local owner occupation figures to coincide with the publication of the 2021 Census figures.
Levels of owner-occupation in England peaked in England in 2003 at 70.9% and fell steadily until the start of 2017 when the trend started to reverse. This reversal has now paused – there are currently just over 15.6 million owner occupiers in England (64% of total households). It is estimated that there are currently just over 24 million households in England.
Since 2013-14 there have been more outright owners. In 2020/21, 35% of households owned their property outright, while 30% were buying a house with a mortgage. The increase in numbers owning their property outright is partly explained by an ageing population, with large numbers of ‘baby boomers’ reaching retirement age and paying off their mortgages. It also reflects the very low mortgage rates over the last decade which have allowed many people to reduce their mortgage debt, the society said.
The 1980’s saw the biggest increase in owner occupation levels as a direct result of Margaret Thatcher’s Right to Buy (RTB) legislation. As a result of this legislation, almost two million extra people have become owner occupiers through RTB.
Andrew Cook, senior strategy manager, Leeds Building Society, said: “There is little doubt that owner occupation remains the preferred housing tenure for many people. After a period of decline between 2003 and 2016, we are now starting to see an increase once again in the number of people owning their own homes but appreciate the ongoing challenges aspiring homeowners face.
“Here at Leeds our purpose is to help put home ownership within the reach of more people and although mortgage costs for many have increased since last year’s mini-budget and housing is currently at its least affordable point since records began, we expect the desire for people to get on the housing ladder to remain. This will continue to underpin demand for housing.”
In 2021-22 the private rented sector accounted for 4.6 million (19%) of households, no change from the previous year, but lower than in 2016-17 (20%). Throughout the 1980s and 1990s the proportion of private rented households was steady at around 9% to 11%. While the sector has doubled in size since the early 2000s, the rate has remained at around 19% to 20% since 2013-14.
The social rented sector accounts for around four million households (17%) and is the UK’s smallest tenure following a longer-term downward trend which stabilised over the last decade. In 2021-22 around 2.5 million households rented from housing associations whilst 1.6 million rented from local authorities.
There is a clear north/south divide in levels of owner occupation. At the peak of owner occupation in 2003 (70.9%), the South East had the highest level (76.9%), whilst London had the lowest levels (61.1%).
Since 2002, all the regions have seen a steady fall, with the East Midlands currently being the region with the highest levels of owner occupation at 70.1%. London remains the region with the lowest levels of owner occupation at 49%.
More than 60% of households are owner occupiers in all English regions except for London, where 49% of households own the home which they live in. London has the highest level of private rented accommodation in the country (29.1%) as well as one of the highest levels of social rented accommodation (21.9%). The North East has the highest levels of Social Rented property (22%).