Home ownership at 30-year low as prices keep rising
Home ownership in England has dropped to its lowest level in 30 years thanks to soaring property prices. Since peaking in April 2003 at 71%, home ownership in February of this year had fallen to 64%. The recent measures announced by the Bank of England, notably the cut in Bank Rate to just 0.25%, should make the mortgage market even more competitive, though house prices continue to rise faster than average incomes.
Majority of over-55s “don’t want to downsize”
The majority of UK home owners aged 55 and over don’t want to downsize, despite calls for more to be done to free up homes for first-time buyers and second steppers1. For the quarter of respondents who said they would like to downsize, 39% said there aren’t enough of the “right kind” of properties to move to, while 40% thought the costs are “too prohibitive”.
Bank of mum and dad releases £0.5bn of equity
Equity release lending passed half-a-billion pounds for the first quarter on record2. The total volume of new plans agreed across the market was up 23% year on year, the highest annual growth rate in nearly 13 years. The 6,671 new plans agreed was the largest quarterly total since the final three months of 2008, and indicate the increasing importance of residential property in household financial planning.