Home ownership rates remained stable in 2024 at 65% reflecting a general trend over the last 10 years. Over half of homeowners own their property outright (55%), a figure that has increased by 1.3m in the period to 8.7m households. Much of this growth is in the 65+ demographic where the number of households owned outright has risen from 4.5m to 5.4m. Across all age demographics more households are owned outright in 2024 than 2014.
Homeownership rates amongst those aged 25-34 has been gradually rising over the last decade but in the 35-44, 45-54 and 55-64 that number is falling.
The data comes from the latest Nationwide House Price Index, released on the same day as the Bank of England’s December Credit Report in which mortgage approvals on house purchases in rose 0.7% from November to 66,526. That number is nearly 30% higher than the 52,087 seen in a year earlier in December 2023.
Total mortgage approvals for 2024 sat at 754,983, up 31% when compared to 2023 total approvals of 577,173. The Bank of England report net borrowing of mortgages by individuals increased by £1.0 billion to £3.6 billion in December, following a decrease in net borrowing of £0.9 billion in November. The annual growth rate for net mortgage lending rose to 1.5% in December from 1.3% in November, a rising trend since April 2024. Gross lending increased to £21.3 billion in December, from £20.8 billion in November, while gross repayments increased to £18.5 billion from £18.1 billion.
And in a sign the 2025 property market is off to a busy start, net mortgage approvals for house purchases, which is an indicator of future borrowing, increased by 500 to 66,500 in December, following a fall of 2,300 in November.
Conveyancing firms anecdotally report strong starts to the year with many acknowledging the role of the stamp duty ‘cliff edge’ in March at the end of current first time buyer relief, but are confident momentum will be maintained. Most firms are advising clients who instruct now they are unlikely to compete before 31st March and instruction volumes remain steady.
Commenting on the latest figures Nathan Emerson, CEO of estate agency memebrship body Propertymark said:
“Many people are likely to have been working with urgency to get their mortgages approved to help ensure they can complete ahead of Stamp Duty threshold increases in England and Northern Ireland before the start of April.
“It has been an upbeat start to the year overall and very much spurred on by some lenders reducing rates by up to 0.35% across many of their fixed-rate re-mortgage products. Our Propertymark member agents have also in turn also witnessed an uplift of around 10% in activity from prospective buyers. Depending on what happens with inflation as the year progresses, hopefully the Bank of England will look to reduce the base rate further, which will likely translate into more affordable mortgage products and further stimulate the housing market.”