4.5m renters never expect to own a home

Data compiled by the Office for National Statistics for its English housing survey shows 3m social renters and 1.5m private renters never expect to be in a position to buy their first home.

Owner occupation in England has fallen by 200,000 from 14.6m in 2008 to 14.4m in 2012. Over the same period of time, the number of private renters has increased by 23 per cent, from 3.1m to 3.8m.

Castle Trust chief executive Sean Oldfield says: “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.

“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.”