Published On: Tue, Nov 26th, 2019

House Prices and Home Ownership Trends of 2019

The UK has been through many financial and economic changes over the past 20 years, with boom times, recessions, financial meltdowns, and now looming Brexit.  How has this affected the housing market, in particular home ownership levels, and house prices? And what can we expect from the next few years?

Blocks of Flats Insurance Specialist Deacon compiled information from several industry reports on the housing industry and some of it makes for very interesting reading.

photo/ mohamed Hassan

House Price Trends and Brexit’s Affect

With house prices currently on a slow downturn in 2019 due to fears about Brexit, there are further concerns that this trend may speed up post Brexit if there is no deal.  

Some areas of the country such as the capital and some booming regions in suburban areas have seen a positive recovery against the price drops seen in 2008 and then 2009.  But in general the rate of recovery is low and concentrated on only some high demand regions.

Home Ownership Trends

Percentage of homes inhabited by their owners currently stands at 64%, that’s 14.8 million homes of the 23.2 million.  Take a guess is that on an upward or downward trend? Well the peak was in 2003 after decades of strong growth following Thatcher’s drive to sell council housing to it’s tenants.  But since 2003 the trend has been downward, with a lot of new builds being bought by landlords to rent out rather than by first time buyers, and for homes left empty by the older generation deceased or going in care snapped up by developers to add to their growing rental property empires or to be renovated and sold on to buyers higher up the housing ladder.

Despite this downturn the number of people wanting to buy remains unchanged, with 60% of renters expecting that they will be able to buy at some point.  But their hopes are looking unlikely as most 25-34 years old are significantly less likely to own their own home due to being financially unable than their cohort at the end of last century.

For the generation born in the late 1980s there is a 25% home ownership rate, whereas for those 5 years older than them that rises to 33%, and 43% for those born in the 1970s.  These home ownership rates will likely increase slightly but the divide between these three generations isn’t likely to close due to the lack of financial affordability. Many have missed their opportunity to get onto the housing ladder, and spirally personal debts on credit cards and in unsecured loans mean they will likely never qualify.

It would come as little surprise to us that those in their 50s and older hold 75% of Britain’s housing wealth, whereas the generation under 35 own only 4% of the housing market wealth.  For many their own chance of owning a home is through inheritance. But their grandparents and parents are now more likely to opt for equity release to provide for their own care in their golden years.

Author: James Daniel

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