‘A Scotsman’s Home is his Castle’ is (almost!) the phrase that was coined
in Victorian times as the UK has a reputation for being a country of home
owners ... but the truth could be further from the point, because in
a league of the top 46 economic nations of the world, where owning your
property is permissible, the UK is only ranked no.37.
As I mentioned a few weeks ago, at the end of the First World War, 77% of
people rented their home (the vast majority renting from a private landlord as
Council Housing was still very much in its infancy). Homeownership rose very
slowly in the 1920’s and started to grow as the economy grew after the Great
Depression. However, after the Luftwaffe had flattened huge swathes of housing
in the early 40’s, the priority was to get people into clean and decent
accommodation ... so Local Authority’s (Councils) took up the baton and they
built large council estates in the 1950’s and 1960’s.
As the UK economy got back on its feet in the middle part of the 20th
Century and wages rose, people decided they wanted to own their own home
instead of renting. Throughout the post war decades, it became easier to secure
a mortgage. Interestingly, by 1977, 61.6% of 30 to 34 year olds were owner
occupiers with a mortgage compared to 8.7% of 30 to 34 year olds being in
private rented accommodation (the remaining either being in council housing or
living with friends or family). Ten years later, in 1987, we saw some
significant growth in homeownership, as 68.2% of 30 to 34 year olds had a
mortgage and only 4.6% of people privately rented. A decade later and there
wasn’t much change as, in 1997, the homeownership figure was 68.3% but private
renting had jumped to 12.1% in the same 30 to 34 year old age group.
Move on another ten years to the 2007 figures, and this showed a slight
drop in homeownership to 65.8% but renting had continued to increase to 18.7%
(in the 30 to 34 year old age group). The latest set of figures is for 2014,
and only 47.2% of 30 to 34 year olds had a mortgage and an eye watering 33.4%
of 30 to 34 year olds privately rent.
When we look at the Bo’ness figures of homeownership, the 2011 census
showed home ownership in Bo’ness was 63.2% and private rented was 8.1%. Private
renting will increase not because property has become more expensive but
because 30 somethings haven’t got a council house to move into (because they
were all sold off) – so they have to rent privately. The selling of council
housing in the 1980’s (a subject I have talked about in a previous article in
the Bo’ness Property Blog) artificially grew homeownership in the 1980’s, but
as these people have got older, the younger generation didn’t have the same
opportunity to buy their council house in the 1990’s, 2000’s or 2010’s. That is
why, unless the council start building council houses by the acre, and hundreds
of acres at that, private renting will continue to grow in Bo’ness.
So if you want blame anyone ... blame the Grocer’s daughter from Grantham
– Mrs T …. but before you do – do remember in the 1970s, the UK was called the
"sick man of Europe" by critics of the UK government, because of
industrial strife and poor economic performance compared to other European
countries culminating with the Winter of Discontent of 1978/9 and if it hadn’t
been for her we wouldn’t be where we are today.
If you would like any advice on the Bo’ness property market, feel free to
pop into our office at 19 Main Street, Bo’ness for a chat, give us a call 01506
828096 or email us on news@thekeyplace.co.uk.
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