You are here: Home - Mortgages - First Time Buyer - News -

Home ownership collapses for working age people

0
Written by:
10/02/2020
Adults at the height of their working life are three times more likely to rent than own a property compared to 20 years ago, according to official data.

Only half of people in their mid-30s to mid-40s had a mortgage in 2017, down from two thirds in 1997, the latest data from the Office for National Statistics (ONS) showed.

A third of people in this age group were renting from a private landlord, up from fewer than one in 10 in 1997.

The ONS warned that if the trends continue older people in the future will be more likely to be living in the private rental sector.

And this could have big implications for what life will be like for older people, the body added.

Older people mortgage free

At the same time, older people are far more likely to own a home outright.

Almost three-quarters of people aged 65 and over owned their home without a mortgage, according to the research.

In 1993 the number who had paid off their mortgage was at 56 per cent.

The ONS said over 65s now included people who were the first to benefit from the government’s right to buy initiative, which saw social housing sold at reduced prices and boosted home ownership.

Jim Boyd, chief executive of the Equity Release Council, said: “The UK is ageing rapidly and few can be surprised that 74 per cent of people aged 65 and over own their own homes.

“For those facing a shortfall in retirement income, debt or care costs this provides them with a lifeline as they try and make sense of the financial choices open to them.”

 

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Government mulls tax raid on top earners’ pensions

The government is considering cutting pension tax relief for higher earners in the Budget on 11 March.

Close