The proportion of people aged 24-64 living in their own home has fallen over the last 10 years, and the proportion renting privately has risen, according to the government’s latest English Housing Survey.

This was most apparent in the younger age group, 24-45-year-olds, where the proportion of those who live in their own home has fallen from 64% to 59% – and private renters have risen from 20% to 25%.

The Survey also said that currently 19% rent privately, 35% own outright, and 30% have a mortgage.

In 2021-22, there were around 852,000 recent first-time buyers – down 100,000 in a year. Their average age was 34 and the average deposit £43,693. People with mortgages are concentrated in the highest two-fifths of earners.

Renting more expensive

The survey also found that it’s cheaper to own a home than rent (once you’ve saved a deposit).

On average, mortgage borrowers spent 22% of their household income on mortgage payments in 2021/22, whereas if you exclude housing support, private renters paid 38% on rent.

Renters also suffer the consequences of living in lower quality property. While overall 14% of homes don’t meet the Decent Homes Standard, this rises to 23% in the private rented sector.

Only 52% of renters have savings compared to 78% of those who live in their own home.

Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, said: “For anyone who owns their own home, and isn’t moving up the ladder, years of runaway house prices have made them feel richer and more secure.

“However, for those who are struggling to buy their first home, it has had precisely the opposite effect. More people are renting later in life, which comes at a horrible cost, and for those who make the leap into home ownership, it also raises new risks.”