Home Ownership Figures Drop Sharply in last 10 years
New census figures reveal that the number of private rental sector tenants has doubled, whilst the proportion of people who own their own home has fallen dramatically.
The latest figures from the Office of National Statistics (ONS) show that one in five families in England, (1.2 million households) were renting from a private landlord in 2011, double the figures revealed in the previous 2001 Census.
Over the same period, the proportion of families who own their own home has dropped by 13%.
- The 2011 Census results show that 1,204,830 households in England with dependent children were renting privately.
In the 2001 Census, this figure was only 604,228.
- The Census also showed that the proportion of households with dependent children renting privately in England in 2011 was 19%.
In 2001 this was 10%.
- The proportion of households with dependent children that own their home, either outright or with a mortgage, in England was 60% in 2011.
In 2001 this figure stood at 68%, a proportionate decrease of 13%.
- Households with dependent children made up 32% of all private rented households in 2011, compared to 25% in the 2001 Census.
Homelessness charity, Shelter have already called on the Government to build more affordable properties for residential homes, saying that if Government did not do so, more families would be “forced to bring up their children in unstable private rented homes”.
Shelter’s chief executive, Campbell Robb, said: “These figures show that renting is no longer the preserve of the young and the mobile. More and more families are joining the ranks of ‘generation rent’ because they are priced out of a home of their own. Despite working hard and saving each month, the reality is that home ownership has become a distant dream for many, leaving more families to bring up their children in short-term lets that don’t provide the stability they need. The Government’s Spending Review has failed priced-out families by continuing decades of under-investment in building the homes we need. Unless this changes, tomorrow’s young people and families will find it even harder to find an affordable home and get on in life.”
The reality of Mr Robb’s statement is that there is still a housing shortage in the UK, however, more families are choosing to live in rented property by choice, not necessity. Rented property repairs and maintenance issues are the responsibility of the landlord, as many tenants don’t want the hassle or expense of owning property, they are more than happy to leave this responsibility to the landlord so they can just get on with their lives.
This is all well and good but landlords need to be smart and ensure that the rental property is properly protected with adequate Landlord Insurance, to cover the costs of any mishap or expensive property repairs. Having the correct insurance is vital for protecting the landlords investment assets and provides a sensible alternative to just leaving things to chance.
Many landlord insurance policies provide far more than just standard cover for rented property, they can also cover loss of rental income should repairs make the rental property uninhabitable during works, providing the landlord with some degree of guaranteed income even when the rental property is undergoing necessary repair.
Tenants don’t have to bother with the expense of buildings insurance, however they should take out their own Tenants Contents Insurance to protect their personal belongings whilst living in rented accommodation.
To find out more about insurance policies offered by Legal 4 Landlords