Around 4.5 million - equivalent to 61% - of all private and social renters in England do not ever expect to buy a home, according to new analysis from housing investment provider, Castle Trust.
Its analysis of the latest ONS English Housing Survey shows that three million social renters and 1.5 million private renters don’t believe they will ever buy a home. Indeed of those that do envisage buying a home, half - around 1.5 million - think it will be five years or more before they will look to buy.
Castle Trust’s analysis also showed that owner occupation in England has decreased by 200,000 from 14.6 million in 2008 to 14.4 million in 2012. However the number of private renters in England in 2012 increased to 3.8 million, an increase of 23% from the 2008 figure of 3.1 million
For many, owning a home does not appear to be a viable option. With the number of renters on the increase and owner occupation falling, Castle Trust believes that the development of innovative mortgage products is crucial in creating a competitive sector that provides increased choice of mortgage options for potential homebuyers.
Sean Oldfield, chief executive officer, Castle Trust said: “Many people are either unable to get on the property ladder or stuck in their current home despite interest rates still being at an all-time low. Schemes like the Government’s Funding for Lending are helping to boost borrowing options but the market still needs innovative lending products.”
