The government's English Housing Survey shows that homeownership is now 8% lower than its peak of 71% in 2003.
Since 2013-14 there have been more outright owners than mortgagors, and the proportion of mortgagors has declined from 31% in 2013-14 to 29% in 2015-16.
The government says increase in the proportion of outright owners (to 34% in 2015-16) is partly explained by population ageing, with large numbers of baby boomers reaching retirement age, paying off their mortgages and moving into outright ownership.
With the decline in homeownership, the private rented sector has doubled in size since 2004 and now accounts for over 4.5m households, or 20% of households.
On average, those buying their home with a mortgage spent 18% of their household income on mortgage payments whereas rent payments were 28% of household income for social renters and 35% of household income for private renters.
John Goodall, CEO and co-founder of Landbay, said: “As house prices rise further out of reach of aspiring homeowners, home ownership levels have dwindled. Generation Rent is growing both in volume and household size, with people now more likely than ever to be in rental accommodation not just as young adults, but also as they begin and grow their families. This is a growing problem in London particularly, where space is already at a premium. Tenants in the capital are paying a premium for larger properties, three times the national average in fact, according to the Landbay Rental Index.
“Whether tenants are renting as a stepping stone on the way to home ownership or, increasingly, renting for life, more people than ever are reliant on a well-served buy to let market to ensure price growth doesn’t become unbearable. Last month’s Housing White Paper was a promising sign that the private rented sector may finally start to be given the investment and attention it needs to prevent the market from boiling over. Hammond’s upcoming Budget is the perfect opportunity to now deliver his commitment to build-to-rent developments, prioritising the areas in the UK that need them the most.”
