Mortgage-backed homeownership is highest in the South East
Mortgage lending underpins 30% of England’s housing stock, rising to 42% in the most mortgage-reliant local authorities, according to data analysis by mortgage adviser Alexander Hall.
The firm reviewed current and historic data on the number of dwellings in England, assessing the share owned with a mortgage and the average annual change in mortgage-backed ownership over the past three years.
It found that England has 25,616,116 dwellings, of which 7,667,051 are owned with a mortgage — equivalent to 30% of the total. By region, the South East recorded the highest proportion of mortgaged homes at 33%, followed by the East of England at 32% and the East Midlands at 31%.
Source: Office for National Statistics
At local authority level, Wokingham and Dartford were identified as the most mortgage-reliant areas, each with 42% of homes owned with a mortgage. Bracknell Forest followed at 40%, pointing to a concentration of mortgage-backed homeownership across parts of the South East.
Elsewhere, the analysis highlighted Central Bedfordshire as the highest-ranking area in the East of England (39%), South Derbyshire in the East Midlands (39%), South Ribble in the North West (37%), South Gloucestershire in the South West (37%), Bromsgrove in the West Midlands (36%), Stockton-on-Tees in the North East (34%), Wakefield in Yorkshire and The Humber (32%), and Bexley in London (38%).
Source: Office for National Statistics
Alexander Hall also reported continued growth in mortgage-backed homeownership. Across England, the number of homes owned with a mortgage increased by an average of 1% a year over the past three years. The East Midlands posted the strongest regional growth over the period, while Rushmoor recorded the fastest increase at local authority level, with mortgage-backed dwellings rising by an average of 4.1% a year.
“Nearly one in three homes across England is supported by a mortgage, and in some areas, this proportion is even higher, which demonstrates just how important the mortgage sector is to keeping the housing market moving,” said Richard Merrett (pictured right), managing director at Alexander Hall.
“There’s no question that the shift away from ultra-low rates after over a decade required a period of adjustment, but despite the increase seen in the cost of borrowing in recent years, mortgage-backed homeownership has continued to grow.
“Of course, in areas where mortgage-backed ownership is particularly high, the value of experienced mortgage advice becomes even more important. A good adviser doesn’t just compare rates, they help borrowers understand the full range of options available and structure their borrowing in a way that supports both their immediate needs and long-term plans.”
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