The proportion of owner-occupied homes in England slipped last year by 1% to 64%, or 15.6 million households, as homes become “the least affordable since records began”, data from Leeds Building Society shows.

In 2020/21, 65% of households either owned their property outright, or held a mortgage. Of this, 35%, of homes were owned outright.

The study says: “The increase in numbers owning their property outright is partly explained by an ageing population, with large numbers of ‘baby boomers’ reaching retirement age and paying off their mortgages.  

“It also reflects the very low mortgage rates over the last decade which have allowed many people to reduce their mortgage debt.”

The report, which drew its data from the 2021 census, points out that home ownership peaked in England in 2003 at 70.9%, but has fallen steadily until the start of 2017 when the trend started to reverse. 

“This reversal has now paused,” says the mutual.

Leeds Building Society senior strategy manager Andrew Cook says: “There is little doubt that owner occupation remains the preferred housing tenure for many people. 

“After a period of decline between 2003 and 2016, we are now starting to see an increase once again in the number of people owning their own homes but appreciate the ongoing challenges aspiring homeowners face.”

He adds: “Although mortgage costs for many have increased since last year’s mini-Budget and housing is currently at its least affordable point since records began, we expect the desire for people to get on the housing ladder to remain. This will continue to underpin demand for housing.”

In 2021-22, the private rented sector accounted for 4.6 million, or 19% of households, unchanged from last year.

The survey points out that throughout the 1980s and 1990s, the proportion of privately rented households was steady at around 9% to 11%.  However, the sector has doubled in size since the early 2000s, although the rate has remained at around 19% to 20% since 2013-14.

The East Midlands is currently the region with the highest level of owner-occupation at 70.1%.  

London remains the area with the lowest level of owner-occupation at 49%, and also has the highest level of private rented accommodation in the country at 29.1%.

There are currently just over 24 million households in England.