Castle Trust’s analysis also showed that owner occupation in England has decreased by 200,000 from 14.6 million in 2008 to 14.4 million in 2012. However, the number of private renters in England in 2012 increased to 3.8 million, an increase of 23% from the 2008 figure of 3.1 million
For many, owning a home does not appear viable. With the number of renters on the increase and owner occupation falling, Castle Trust believes that the development of innovative mortgage products is crucial in creating a competitive sector that provides increased choice of mortgage options for potential homebuyers.
Sean Oldfield, chief executive officer, Castle Trust said: "Many people are either unable to get on the property ladder or stuck in their current home despite interest rates still being at an all-time low. Schemes like the Government’s Funding for Lending are helping to boost borrowing options but the market still needs innovative lending products."
Around 2.8 million owner occupiers in England have lived in their current home for over 30 years suggesting they have not traded down on retirement to free up equity in their home. Moreover, the median tenure for owner occupiers has risen from 11 to 13 years since 2008/09.
Oldfield said: "The risk of rising mortgage rates is a major issue for homeowners with their finances already under pressure. Shared equity can play a major role in reducing risks, including the risk of going into arrears, by cutting monthly mortgage commitments."
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