Strong Desire for Home Ownership Remains

Wednesday, June 13, 2012

Strong desire for home ownership remains, but can it be fulfilled?

Despite all the economic and financial difficulties stemming from the credit crunch, 81% of British adults hope to be home owners in ten years' time, and 74% aspire to it within two years, according to a new research article published by the Council of Mortgage Lenders (CML). 

The article, by CML Chief Economist, Bob Pannell, is based on the results of a survey undertaken by YouGov. The survey includes questions that have been repeated consistently since the mid-1970s, enabling comparisons with earlier periods to be drawn. It shows that the desire for home ownership has fallen back a little in recent years, but still remains strongly entrenched across all age groups.

Aspirations are much higher than current home ownership levels among those aged under 35, but it is far from clear whether and how people will achieve their home ownership goal. Notably, most of those who are renting privately or sharing with family or friends are under 35, and more than half of these (54%) would like to become home owners over the short term. However, only one-third of those who hope to be home owners in two years' time actually expect it to happen.

Mr Pannell observed that  "The results clearly show that the British love affair with home ownership is far from over, but achieving the home ownership dream has become more difficult for people, and is likely to remain so, especially for the young.

"We need to ensure that good quality housing is available in a variety of different tenures, and that the growing private rented sector represents an attractive choice for those who do not want, or cannot attain, home ownership. However, we also need to recognise that for the overwhelming majority of people, home ownership is still the ultimate goal."