Mortgage lending now underpins 30% of England’s housing stock, rising to as high as 42% in the country’s most mortgage-reliant locations.
At the same time, many areas of the market have seen a notable increase in the number of homes owned with a mortgage over the last three years, highlighting the continued strength and resilience of the lending sector.
The research from Alexander Hall shows that of the 25,616,116 dwellings across England, 7,667,051 are owned with a mortgage, equating to 30% of the nation’s housing stock. Regionally, the South East is home to the highest proportion of mortgage-backed homes at 33%, followed by the East of England at 32% and the East Midlands at 31%.
When breaking the market down at local authority level, it is the South East area of Wokingham that is home to the strongest mortgage market, with 42% of all homes owned with a mortgage. Dartford also ranks highly at 42%, while Bracknell Forest follows closely at 40%, underlining the concentration of mortgage-backed ownership across parts of the South East.
The research also shows that the number of homes owned with a mortgage has continued to rise steadily and, across England, mortgage-owned dwellings have increased by an average of 1% per year over the last three years.
The East Midlands has seen the strongest regional growth over this period, whilst at local authority level, Rushmoor tops the table, with mortgage-backed dwellings increasing by an average of 4.1% per year over the last three years.
Richard Merrett, managing director of Alexander Hall, commented: “Nearly one in three homes across England is supported by a mortgage, and in some areas this proportion is even higher, which demonstrates just how important the mortgage sector is to keeping the housing market moving.
"There’s no question that the shift away from ultra-low rates after over a decade required a period of adjustment but despite the increase seen in the cost of borrowing in recent years, mortgage-backed homeownership has continued to grow.
"Of course, in areas where mortgage-backed ownership is particularly high, the value of experienced mortgage advice becomes even more important. A good adviser doesn’t just compare rates, they help borrowers understand the full range of options available and structure their borrowing in a way that supports both their immediate needs and long-term plans.”
