Number of families with mortgages down 20% in 20 years – Perenna
The research found the number of households with children in the rental sector has gone up by 121% since 2004, adding 834,000 more families.
Analysis from Perenna found the number of families with mortgages in England has dropped by 20% in the last 20 years, with 803,000 fewer households with children owning a property with a mortgage compared to 2004.
The figures have fallen from 4 million to 3.2 million since then.
The research found the number of households with children in the rental sector has gone up by 121% since 2004, adding 834,000 more families.
There are now over 1.5 million households with children renting, which accounts for 32% of the rental market.
The increase in families renting is much higher than the 1% rise in the total number of households with children over the same period.
The number of households without children grew by 20%.
There has also been a 99% increase in the number of renters without children, though this is less than the rise among families.
The options for families unable to buy have reduced too.
The number of households with children in all social housing is down by 2% since 2004, and there are 29% fewer in local authority accommodation since 2008.
Colin Bell, co-founder and chief operating officer at Perenna, said: “Our analysis paints a stark picture of the current UK housing market.
“We have been stuck in the grips of a mortgage affordability crisis for nearly two decades, compounded by a lack of suitable housing stock and a simultaneous lack of investment in alternative tenures.
“This reality is leaving hundreds of thousands of families unable to get onto the property ladder at all, exposed to ever rising rents and often, unsuitable properties, and we need to find a much more effective way to support them.”
Bell added: “We need to see more innovation hit the mortgage mainstream to address this need.
“Affordability led low deposit mortgages and higher LTI lending are vital for helping them navigate higher house prices.
“Longer-term fixed rates with affordability based on the fixed rate will enable families to access more finance, giving them the ability not only to get on the ladder, but to stay on it in property that suits them as well as giving them fixed payment stability for longer.”
He said: “Taking action will create a nation of happy homeowners who can build equity and financial stability, and drive our economy forwards – not a group of renters for whom buying remains a pipedream.”
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