For the first time since the 1980s, more householders own their homes outright than the number of people who are purchasing with mortgages.
The recently released data from the Government, which shows information for the housing market during 2013-14, has been criticised by housing groups as it adds further proof to the belief that a generation is at risk of being priced out of the market.
Over the last decade, the proportion of 25-34 year olds who were also owner-occupiers fell from 59 per cent to 36 per cent, with more of them continuing to live with family or opting to rent a property.
While the mortgage market has picked up from 2014, as lenders are much more competitive in offering mortgages to those with smaller deposits, current homeowners have continued to benefit from the low rates available and some have paid off their home loans quicker than expected as a result.
The proportion of owner-occupied households rose steadily from the 1980s until the 71 per cent peak was reached in 2003, but the figure has fallen every year after that date and almost 50 per cent of those aged 16 to 34 now rent from private landlords.
David Orr, Chief Executive of The National Housing Federation, said: “As house prices continue to rise we’re in danger of winding back the clock on homeownership, with only the privileged few having any hope of affording it.
“At the moment people who can’t buy a home have little or no choice but to rent privately, going from one short-term let to another at an ever escalating cost.
“We believe that everyone should have a home they can afford, which means having more affordable homes to rent or buy through shared ownership and a private rental market that’s fit for purpose.”
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