Solihull Property Market in Crisis : Who is to blame?

As I mentioned a couple of weeks ago, at the end of the First World War, 77% of people rented their home. Homeownership rose very slowly in the 1920’s and started to grow as the economy grew after the Great Depression. Local Authorities took up the baton and built large council estates in the 1950’s and 1960’s.

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% in private rented accommodation. 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 of a change in 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 2007 and figures show 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 are recorded as having a mortgage and an eye watering 33.4% privately rent.

When we look specifically at the Solihull homeownership figures, in 1991 83.15% of Solihull households were owner occupied, 14.05% of Solihull households were privately rented. Much of the rise in the number of people privately renting in Solihull, since the turn of the Millennium, is not because property has become more expensive, but due to the fact that the 30 somethings haven’t got a council house to move into so they have to rent. The selling of council houses in the 1980’s artificially increased homeownership, but the younger generation didn't have the same opportunity to buy their council house in the 1990’s. This is why, unless the council start building council houses, private renting will continue to grow in Solihull.

So if you want blame anyone … blame the Grocer’s daughter from Grantham – Mrs T …. but before you 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 so she did get the country back on its feet.

If you want to read more articles on the Solihull property market, whether you are Solihull landlord, Solihull homeowner, first time landlord or a first time buyer – then visit the Solihull Property Market Blog… http://solihullpropertyblog.blogspot.co.uk.