Newspaper article The Journal (Newcastle, England)

Many Don't Care about Home Ownership

Newspaper article The Journal (Newcastle, England)

Many Don't Care about Home Ownership

Article excerpt

Byline: Michael Brown Reporter

THE British love affair with home ownership could be coming to an end despite signs that the housing market is picking up.

Almost one in five 23 to 27-yearolds say they've no desire to ever step on to the property ladder, while more than a third say they will not be able to even consider it within the next five years, a new survey by the Halifax has found.

But there is good news for "Generation Rent," with the cost of being a tenant rising at its slowest rate for four years and, should they decide to buy, mortgage lending 33% up on the same time a year ago.

The Halifax report found almost half of people agreed that Britain will become a nation of renters within the next generation and 46% thought the country is becoming more like other parts of Europe, where longterm renting is seen as the norm. While according to LSL Property Services, which owns estate agent chains Your Move and Reeds Rains, the average rent across England and Wales increased by just 0.9% over the last year to reach PS741 per month.

Meanwhile, in further signs that household finances are improving, the proportion of tenants' rent which is late or unpaid has dropped back from 8.5% in 2013 to 7.8% today.

And mortgage lending in March was one third higher than the same month a year ago, with the Council of Mortgage Lenders estimating PS15.4bn of loans were granted.

David Newnes, director of Reeds Rains and Your Move, said: "Mortgage lending is recovering steadily - and the impact is becoming clear.

"This year is seeing access improve across all areas of the property market."

CML chief economist Bob Pannell agreed, saying housing market sentiment "continues to strengthen".

But despite Government schemes like Help to Buy, the Halifax's findings showed there is still a heavy reliance on the "bank of mum and dad", with 60% of 20 to 45-year-olds agreeing that support from family members is now automatically assumed as a vital part of helping people on to the property ladder. …

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