Nearly two thirds (59 per cent) of private renters in England never
expect to buy their own property because they won’t be able to
afford one, as councils warn of the nation's
growing "home-owning hopelessness".
The Local Government Association said councils need powers and
funding to create a mix of affordable housing options, both for
renters hoping to save up for a deposit and those looking to buy,
to help boost affordability and home ownership.
The latest English Housing Survey figures show there has
been a noticeable increase in the amount of renters that say that
affordability will stop them from owning their own home. In
2008/9, the proportion of this group was 56 per cent, compared to
70 per cent in 2015/6.
The LGA, which represents more than 370 councils in England and
Wales, is also concerned that:
- One in five (21 per cent) private renters are dissatisfied
with their tenure, compared to less than 1 per cent of owner
occupiers. Just 2.7 per cent of renters said they rented because
they preferred the flexibility of the tenure, suggesting that
most renters would like to own, but cannot afford the home that
they need.
- With the average homebuyer expected to pay 7.6 times their
annual wages for a home, many renters are locked out of the
housing market. In Camden, in London, this rises to as much as
11.8 times the average salary, in Wiltshire, it’s 9.5 times the
average salary, and in Harrogate, in Yorkshire, house prices are
10 times the average salary.
Private renters spend on average 35 per cent of their income on
housing costs, compared to those who own their home spending just
18 per cent.
The LGA said councils need to be given additional freedom and
flexibilities and access to funding, to resume their historic
role as a major builder of affordable homes – including those for
social and affordable rents - to boost affordability and home
ownership.
This means being able to borrow to invest in housing and to keep
100 per cent of the receipts from any homes they sell to replace
them.
Cllr Martin Tett, the LGA’s Housing spokesman, said:
“It’s worrying that so many people renting a home feel a
sense of home-owning hopelessness.
“We know that the shortage of houses is a top concern for people
as homes are too often unavailable, unaffordable and not
appropriate for the different needs in our communities. All types
of homes - including those for affordable and social rent – have
to be built to solve our this shortage, boost affordability and
increase home ownership.
“For this to happen, councils desperately need additional
flexibility, and access to funding, to resume their historic role
as a major builder of affordable homes.
“This means being able to borrow to invest in housing and to keep
100 per cent of the receipts from properties sold through Right
to Buy to replace homes and reinvest in building more of the
genuine affordable homes our communities desperately need.”
NOTES TO EDITORS
1. Read the Department for Communities and Local
Government’s English Housing
Survey.
2. The average home-buyer is likely to pay 7.6 times
their annual wages for a home, according to the latest figures from
the Office for National Statistics on housing affordability.
