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UK housing inequality grows as generation gap in ownership widens

(pre 1386 dana)
UK housing inequality grows as generation gap in ownership widens

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/52a03274-bce1-11e4-a917-00144feab7de.html#ixzz3Slb8m74L People who own their homes outright with no mortgage have become the dominant force in the housing market, according to new data, while a generation of young people are unable to get on to the property ladder. The figures come a day after the OECD called on the UK government to consider allowing housebuilding on protected greenbelt land in an effort to increase the supply of new homes. High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/52a03274-bce1-11e4-a917-00144feab7de.html#ixzz3Slb8m74L The number of outright owner-occupiers in England exceeded those with a mortgage for the first time in 2014, the annual English Housing Survey found. England has 7.4m outright owners, compared with 6.9m households with a mortgage. The proportion of 25- to 34-year-olds who own their own home has, meanwhile, fallen sharply in the past decade, from nearly two-thirds in 2003-04 to just 36 per cent in 2014. The figures highlight the extreme generational inequality in Britain’s housing market, as rising prices and tighter lending conditions have put ownership out of reach for the young while benefiting older people with little or no mortgage. The difficulty in buying a home and a lack of social housing have pushed younger households into privately rented housing: almost half of all 25- to 34-year-olds now rent from private landlords. As a consequence landlords have made £177bn from rising house prices in the past five years, research published earlier this year revealed. In London the contrast is even more extreme: more people in the capital rent privately than own either outright or with a mortgage. On average tenants pay £281 a week to rent in London, the survey found — about half of median take-home pay in the capital. Rented housing is often poor quality, insecure and temporary: more than a third of tenants had moved house in the past year, the survey found. This compares to just 4.8 per cent of owner occupiers. Meanwhile, the proportion of private tenants in employment who receive housing benefit to subsidise their rent has doubled in the past five years, from 7 per cent to 14 per cent. This is fuelling rent rises and feeding into house price increases as landlords can afford to outbid first-time buyers, some think-tanks and politicians have argued. Campbell Robb, chief executive of housing charity Shelter, said the trend “can’t go on”. High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/52a03274-bce1-11e4-a917-00144feab7de.html#ixzz3Slb8m74L “These figures confirm what millions of people across the country are already feeling: a home of their own has become a distant dream, no matter how hard they work or save,” he said. “The shortage of affordable homes is leaving young adults with no choice but to remain stuck in their childhood bedrooms, or face decades paying out dead money to landlords.” He called on politicians to “commit to tackling the housing shortage once and for all”. Melanie Leech, chief executive of the British Property Federation, said the government should do more to encourage the construction of new privately rented homes. “The UK is facing an acute housing crisis, and at the same time we are seeing a significant change in the way in which the population is living,” she said. “The build to rent sector is an obvious solution to this.” FINANCIAL TIMES


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