Sharing the spoils: Ben Marshall presentation

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Low to middle income households are increasingly shut out of traditional home ownership, and more and more families with children are living in the private rental sector. We know, however, that home ownership overwhelmingly remains most people’s preferred tenure and the lack of asset accumulation amongst long term renters is a concern. In this presentation Ben Marshall discusses public perceptions of renting vs buying and shared ownership
  • 1. “You can just about afford to rent so what makes you think you can afford to buy a house…” “It’s like when it says on the news the average person buying a house in London is in his 40s, so that don’t give no hope for young people or anyone really.”” “I think there’s a lot of mis-information [about shared ownership] because where do you hear about details and stuff like that? I just heard of it years ago, I just thought it’s for nurses…” @BenM_IM #sharedownership
  • 2. Young/renters squeezed most by housing costs Q 2 Approximately, what proportion of your total household income AFTER tax and national insurance contributions, do you pay in mortgage payments or rent (excluding utility bills and council tax). Would you say it is….? More than a third Age group 24% 18-24 25-34 35-54 55-64 49% 30% HA rented Private rented / other 54% 35% 47% 16% Tenure LA rented 29% 31% 57% 38% 33% 36% 30% 47% 31% Social rented (LA & HA) Base: 697 GB adults excluding those who own outright, 25 October-27 October 2013 Version 1 | Public 46% 31% Owners © Ipsos MORI 30% 42% 65+ Owned with mortgage A third or less (excluding nothing) 57% 35% Source: Ipsos MORI/Panorama
  • 3. ‘Debt peril’ – some low tipping points 3 Q. Thinking about the total amount of outgoings your household has – that is the amount your household spends to cover living costs and bills – what is the lowest this would have to increase for you for start to find it difficult to afford? % By £25-£49 per month % By £24 or less per month 27 22 18 11 Social renters 14 11 Private renters Base: 2,016 GB adults 16-75, March 2013 (313 social renters, 289 private renters and 1,384 owner/occupiers) © Ipsos MORI Version 1 | Public % By £50-£74 per month 13 11 11 Owner occupiers Source: Ipsos MORI for Halifax
  • 4. “Momentum behaviour”: house price/rent expectations 4 Q. Do you think the average property price in the UK will be higher or lower in 12 months time or will it be the same? [respondents given average UK house price sourced from Halifax HPI] 80 Rent outlook – balance of % higher minus % lower (+) +64 60 +40 +56 +56 +33 40 +15 20 +20 +9 House Price Outlook – balance of % higher minus % lower (+) 0 -20 Apr-11 Oct-11 Jan-12 Mar-12 Jun-12 Base: 1,000-2,000 British adults 16+ (c400 PRS) © Ipsos MORI Version 1 | Public Oct-12 Dec-12 Mar-13 Jun-13 Sep-13 Source: Halifax/Ipsos MORI Housing Market Confidence Tracker
  • 5. “The nearest the British have to a religion”? 5 Q. If you had a free choice, would you choose to rent accommodation, or would you choose to buy? % Buy 95% 90% 85% 80% 75% Source: Ipsos MORI analysis of British Social Attitudes Survey data Pre war Baby boomers Gen X Gen Y Overall 70% 96 © Ipsos MORI Version 1 | Public 97 98 99 00 01 02 03 04 05 06 07 08 09 10
  • 6. For most, renting isn’t a tenure of choice 6 Q. If you were told that you had to rent, rather than buy, a house or flat for the rest of your life, how would this make you feel? 57% of non-homeowners…A similar proportion believe that people can never feel fully settled in rented property. 61% Unhappy 47% think it is important for parents to bring up children in a home that they own, not rent. Neither 19% Over half (52%) predict that Britain will become a nation of renters within the next generation. 13% Happy Source: ComRes for BBC (2,009 18-29s,19-20 June 2013) Source: Halifax, Generation Rent: A Society Divided? © Ipsos MORI Version 1 | Public
  • 7. Responsibility: it’s the market, stupid? 7 Q. Who or what do you think is most responsible for young people finding it difficult to get onto the property ladder? Size of deposits required 35% Property prices 33% The Government 11% The banks 11% Older generations for pricing young people out of the market I do not hold anyone responsible for the difficulty of getting on property… Yound people themselves 3% 3% 3% Base: All non-owning/mortgaged 18-29 year olds who think getting on the property ladder is difficult (1,748), GB, 20-27 March 2013 © Ipsos MORI Version 1 | Public Source: ComRes/BBC
  • 8. ‘The fourth tenure’? 8 Q. Would you consider buying a part share in a home…? % Don’t Know % No .,.whilst a government-backed scheme helped you buy the remaining share (shared ownership)? …with the assistance of a government-backed repayable low-interest or no-interest loan (shared equity)? …with financial help from a private developer shared ownership or shared equity product? 32% 27% % Yes 24% 36% 39% 46% 29% 27% 40% Base: All potential consumers (3,365) Source: HCA Consumer demand and attitudes in the intermediate market (Ipsos MORI 2010) © Ipsos MORI Version 1 | Public
  • 9. Scope to build awareness 9 Q. Which of the following, if any, best describes your attitude towards intermediate market housing? I am interested in buying or renting an intermediate market home and have already applied 1% I don’t know enough about intermediate housing to know if I am interested or not 21% 53% 24% I am interested in buying or renting an intermediate market home but have NOT applied I am NOT interested in buying or renting an intermediate market home Base: All potential consumers (3,365) Source: HCA Consumer demand and attitudes in the intermediate market (Ipsos MORI 2010) © Ipsos MORI Version 1 | Public
  • 10. Multiple barriers but info & eligibility key Q. Which, if any, of these do you think are barriers to buying a home through a shared ownership scheme? 23% Don't think I am eligible because of income 18% 16% Want to buy without funding from anyone Want more choice in type of property 14% Too difficult to sell on Too difficult to arrange mortgage for these schemes 12% Couldn't buy in location I wanted to 12% 9% Don't think I am eligible because of my job 6% Don't want to go through application process Rules/conditions make it difficult to increase share/sublet etc 4% Don't have enough information to know 24% None/there are no barriers Other Base: 591 private renters 16+, 11-24 November 2011 13% 3% Source: Ipsos MORI for Catalyst Housing
  • 11. Thank you! @BenM_IM #sharedownership
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