'Home owning hopelessness' as private renters fear they may never get
on property ladder
59% of private renters in England never expect to buy their own property
because they won't be able to afford 1, 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%,
compared to 70% in 2015/6. The LGA, which represents more than 370 Councils in
England and Wales, is also concerned that
21% private renters are dissatisfied with their tenure, compared to less than 1%
of owner occupiers. Just 2.7% 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% of their income on housing costs, compared
to those who own their home spending just 18%.
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% 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% 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