Home ownership loses pulling power
New research from the Chartered Institute of Housing (CIH) shows how the recession and credit crisis are affecting the British obsession with property ownership.
According to the CIH, which represents public and private sector bodies involved in housing and communities, young people who have seen once out-of-reach house prices tumble, are particularly disillusioned.
In a survey completed last month, 37% of 18 to 24-year-olds questioned said they believed renting was right for them, rather than trying to get a foot on the property ladder.
Other research reveals that in the past 12 months an estimated 2.4 million people have changed their opinion that homeownership is right for them, with the biggest change in attitudes coming in the 25 to 34 age range.
Negative equity has become a major concern, with one in ten mortgaged homeowners indicating they are either currently experiencing, or expecting to face, negative equity over the next 12 months.
The figure rises to 28% in the 25 to 35 age group and overall, an estimated 12 million Britons expect to face financial difficulties paying their housing costs in the coming year.
However, the majority of the UK population is still firmly behind homeownership, as a sound long-term investment.
In a recent YouGov survey commissioned by CIH, 70% of respondents believed this to be the case with just 14% favouring renting as a cheaper and safer option.
Meanwhile, research among CIH members shows that nearly 80% of housing professionals experienced a rise in demand for rented accommodation over the past 12 months, while 84% reported increasing demand for their debt advice and counselling services.
CIH chief executive, Sarah Webb, said: “We’ve driven too many people into unsustainable owner occupation and we need to make a far better job of putting renting and owning on a level playing field.”
She adds: “A generation has grown up believing it has to own at any cost – in part because we haven’t provided them with decent information about the alternatives. We can’t repeat this mistake with future young people”.
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