Kate Faulkner’s report into the English Housing Survey points to discrepancy with Housing White PaperMake Text Bigger
The English Housing Survey (EHS) is a continuous national survey commissioned by the Department for Communities and Local Government (DCLG). It collects information about people’s housing circumstances and the condition and energy efficiency of housing in England.
The survey includes two parts; a household interview and a physical inspection of a sub sample of the properties. To see the full English Housing Survey 2015-2016 Headline Report Click Here.
Kate Faulkner is one of the UK’s leading property experts, analysing what’s happening to the economy, property prices and rents, and the impact this has on consumers and the property industry.
In a report for Kate’s website PropertyChecklists.co.uk, Click Here to see full article, Kate makes expert commentary on important areas covered.
It is very interesting to note that Kate points out the difference between the EHS and the Housing White Paper on the proportion of income spent on rent.
The EHS says households in the private rented sector (PRS) spend a much larger proportion of their income on housing costs than mortgagors or those in the Social Rented Sector (SRS).
Home owners with a mortgage spend on average 18% of household income on mortgage payments, Social renters spend 28% on rent and Private renters spend 35% on rent.
Kate said, “This isn’t a surprise as they are renting their property and don’t have to incur any maintenance costs. Also, with many mortagees paying off their loans as they get older and in particular with first-time buyers having to pay on a repayment basis, then these figures aren’t quite so useful as they appear.
What is interesting though, is that in the government housing white paper they claim 50% of earnings is spent on renting in the private sector; looks like they have their own facts and figures very wrong!”
The (EHS) also reports that there are more outright home owners than people with mortgages and that 34% of homes are unencumbered with an aging population staying in homes longer.
Kate said, “I find it funny how we aren’t singing from the roof tops that over half of home owners own their property outright with no mortgage. That means if even the housing market goes pear shaped, they won’t necessarily be forced to sell their homes.
And with low interest rates, we are also looking at the lowest repossession rates since 1982. So, on the one hand, we talk incessantly about a housing crisis but, on the other, most existing homeowners are doing just fine and, for them, there is no crisis!”
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