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A century of home ownership and renting in England and Wales

A century of home ownership and renting ... however 4 between 2001 and 2011 first fall in ownership over the century ...and by 1971 3 equal % owning .but from 1953 2 owning started to increase faster 69% 64% and renting... In 1918... majority of households rented... than previously. 50% 23% 1918 1939 1953 1961 1981 1991 2001 1971 2011 31% 36% 50% 77% Within the rental sector, the split between private and social renting has changed over the past century Renting 80% 76% privately renting 60% 40% 31% 20% 18% 18% 7% socially renting 11% 1918 1939 1971 1981 1991 2001 2011 1 Social renting 2 ...and by 1981, 31% of households were in socially rented homes... 3 ..but social renting fell following the introduction of the 4 ..and by 2011 the percentage of households socially renting had fallen back to 18% increased following the Housing Act of 1919... 'Right to Buy' scheme in 198o... Source: Department for Communities and Local Government (DCLG) & Census Some events that have shaped home ownership and renting over the century... 'Increase of Rent and Mortgage Interest Act' of 1915 placed controls on rising rents, mostly affecting private landlords. 1915 By the end of the First World War, over three quarters of households lived in rental homes mostly owned by private landlords 1918 The 'Housing, Town Planning & c. Act' of 1919 obligated local authorities to provide social housing. 1919 Large scale destruction of homes during the Second World War required further investment in social housing after the war ended. 1945 Growth in home ownership over the past half century saw the proportion of home owners equal those renting in 1971. 1971 The 'Housing Act' of 1980 allowed local authorities to sell social housing to sitting tenants, also known as the 'Right-to-Buy' scheme. 1980 The 'Housing Act' of 1988 reviewed rights and responsibilities of tenants and landlords in a bid to end rent controls, making letting more attractive to private landlords. 1988 'Local Government and Housing Act' of 1989 relieved local authorities of their obligation to hold housing stock. 1989 The Act also allowed local authorities to transfer housing stock to Housing Associations and Registered Social Landlords. The 2008 recession resulted in a tightening of lending requirements by banks and mortgage lenders, making it more difficult to get on the housing ladder. 2008 Over the last decade ... 2001 2011 21.7M 23.4m households in England and Wales households in England and Wales of which: of which: 14.9m 15.0m were owner occupiers were owner occupiers (110k 6.7M 1.6m 18.3m rented their homes rented their homes Changes within each category: Ownership 39k Renting 826k rise in the number 1.7m of households with rise in the number shared ownership rise in the number of households renting from private landlords and letting agents of households who own their homes outright 10ok 749k fall in the number of households fall in the number of households in socially rented homes in mortgage bought homes Factors driving an increase in renting include: House prices have risen at a faster rate over the last decade, than in previous years: Inflation & Annual Pay Growth shows that in recent years, prices have grown at a faster rate than wages: £, thousands % 300 7 6 250 5 200 4 150 3 100 2 50 1 1971 1981 1991 2001 2011 2001 2003 2005 2007 2009 2011 Source: Consumer Prices Index (CPI) and Average Weekly Earnings Source: ONS House Price Index (HPI) Average house price to wage ratio Tighter lending requirements obtained by dividing average house prices by average annual wages, shows that house prices have risen faster than wages as the ratio increases over the decade: since the 2008 recession, means that households have had to put up larger deposits to secure a mortgage Ratio 10 2001 2011 Deposit Deposit 4 2001 2004 2008 2011 Source: House Price Index (HPI) and Annual Survey of Hours andEarnings Home ownership and renting across England and Wales in 2011 Highest % buying with mortgage 1. Wokingham 44.2% 2. Bracknell Forest 43.6% 3. Blaby 42.8% England & Wales 32.7% Highest % socially renting 1. Hackney 43.7% 2. Southwark 43.7% 3. Islington 42.o% Highest % outright owners England & Wales 17.6% 1. East Dorset 48.0% 2. East Devon 47.1% 3. North Norfolk 45.8% London England & Wales 30.8% Highest % privately renting 1. Westminster 37.6% 2. Kensington & Chelsea 34.0% 3. City of London 33.1% England & Wales 15.3% Census Office for National Statistics www.ons.gov.uk Renting a rise Ownership rise of 2011 A century of home ownership and renting ... however 4 between 2001 and 2011 first fall in ownership over the century ...and by 1971 3 equal % owning .but from 1953 2 owning started to increase faster 69% 64% and renting... In 1918... majority of households rented... than previously. 50% 23% 1918 1939 1953 1961 1981 1991 2001 1971 2011 31% 36% 50% 77% Within the rental sector, the split between private and social renting has changed over the past century Renting 80% 76% privately renting 60% 40% 31% 20% 18% 18% 7% socially renting 11% 1918 1939 1971 1981 1991 2001 2011 1 Social renting 2 ...and by 1981, 31% of households were in socially rented homes... 3 ..but social renting fell following the introduction of the 4 ..and by 2011 the percentage of households socially renting had fallen back to 18% increased following the Housing Act of 1919... 'Right to Buy' scheme in 198o... Source: Department for Communities and Local Government (DCLG) & Census Some events that have shaped home ownership and renting over the century... 'Increase of Rent and Mortgage Interest Act' of 1915 placed controls on rising rents, mostly affecting private landlords. 1915 By the end of the First World War, over three quarters of households lived in rental homes mostly owned by private landlords 1918 The 'Housing, Town Planning & c. Act' of 1919 obligated local authorities to provide social housing. 1919 Large scale destruction of homes during the Second World War required further investment in social housing after the war ended. 1945 Growth in home ownership over the past half century saw the proportion of home owners equal those renting in 1971. 1971 The 'Housing Act' of 1980 allowed local authorities to sell social housing to sitting tenants, also known as the 'Right-to-Buy' scheme. 1980 The 'Housing Act' of 1988 reviewed rights and responsibilities of tenants and landlords in a bid to end rent controls, making letting more attractive to private landlords. 1988 'Local Government and Housing Act' of 1989 relieved local authorities of their obligation to hold housing stock. 1989 The Act also allowed local authorities to transfer housing stock to Housing Associations and Registered Social Landlords. The 2008 recession resulted in a tightening of lending requirements by banks and mortgage lenders, making it more difficult to get on the housing ladder. 2008 Over the last decade ... 2001 2011 21.7M 23.4m households in England and Wales households in England and Wales of which: of which: 14.9m 15.0m were owner occupiers were owner occupiers (110k 6.7M 1.6m 18.3m rented their homes rented their homes Changes within each category: Ownership 39k Renting 826k rise in the number 1.7m of households with rise in the number shared ownership rise in the number of households renting from private landlords and letting agents of households who own their homes outright 10ok 749k fall in the number of households fall in the number of households in socially rented homes in mortgage bought homes Factors driving an increase in renting include: House prices have risen at a faster rate over the last decade, than in previous years: Inflation & Annual Pay Growth shows that in recent years, prices have grown at a faster rate than wages: £, thousands % 300 7 6 250 5 200 4 150 3 100 2 50 1 1971 1981 1991 2001 2011 2001 2003 2005 2007 2009 2011 Source: Consumer Prices Index (CPI) and Average Weekly Earnings Source: ONS House Price Index (HPI) Average house price to wage ratio Tighter lending requirements obtained by dividing average house prices by average annual wages, shows that house prices have risen faster than wages as the ratio increases over the decade: since the 2008 recession, means that households have had to put up larger deposits to secure a mortgage Ratio 10 2001 2011 Deposit Deposit 4 2001 2004 2008 2011 Source: House Price Index (HPI) and Annual Survey of Hours andEarnings Home ownership and renting across England and Wales in 2011 Highest % buying with mortgage 1. Wokingham 44.2% 2. Bracknell Forest 43.6% 3. Blaby 42.8% England & Wales 32.7% Highest % socially renting 1. Hackney 43.7% 2. Southwark 43.7% 3. Islington 42.o% Highest % outright owners England & Wales 17.6% 1. East Dorset 48.0% 2. East Devon 47.1% 3. North Norfolk 45.8% London England & Wales 30.8% Highest % privately renting 1. Westminster 37.6% 2. Kensington & Chelsea 34.0% 3. City of London 33.1% England & Wales 15.3% Census Office for National Statistics www.ons.gov.uk Renting a rise Ownership rise of 2011

A century of home ownership and renting in England and Wales

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This infographic looks at changes in home ownership and renting over the century, in England and Wales. It also looks at important policies and economic events which impacted on ownership and renting ...

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