The recession and credit crunch seems to be denting our love affair with home owning – at least amongst the younger generation. Research has historically shown that most people aspire to own their own home, but a recent survey commissioned by the Chartered Institute of Housing (CIH) suggests that only about one third (37 per cent) of 18-24 year olds think this tenure is right for them.

The survey of 2,028 people throughout the UK, aged over 18, was undertaken between 19 and 21 May 2009 to look at the growing impact of the recession and credit crunch. The sample included homeowners, private renters and people living in social housing.

However, despite the recession and credit crunch, the majority of the UK population still believe that homeownership continues to be a good long-term investment. In a recent YouGov survey, commissioned by CIH, 70 per cent of respondents believed this was the case. Just 14 per cent of respondents believed renting was a cheaper and safer option than homeownership.

However, there is some evidence that many people are looking again at the issue of homeownership. Over the past 12 months an estimated 2.4 million people have changed their opinion that homeownership is right for them, when asked their ideal living situation before the credit crunch and recession (i.e. pre July 2008), compared to their ideal living situation now.

The biggest change in attitudes has come in the 25 to 34 age range with a 14 per cent reduction, from 83 per cent saying to own their own home was their ideal living situation before the credit crunch, compared to 69 per cent saying it is currently their ideal living situation. And around eight per cent of respondents suggest they are less likely to encourage their family members to aspire to homeownership.

Interestingly, the survey indicates that people aged between 18 and 24 years are less preoccupied with homeownership and probably more realistic in their housing aspirations. Just 37 per cent of the 18 to 24 year olds believed homeownership is currently their ideal living situation. It will be interesting to see whether this apparent generational shift in attitudes continues once the recession ends and credit becomes more freely available.

The spectre of negative equity is also a major concern for a significant proportion of the population. As house prices continue to fall, around one in ten homeowners buying with a mortgage who took part in the YouGov survey indicated they were either currently experiencing or expecting to face negative equity over the next 12 months. This figure rises to 28 per cent of people in the 25 to 35 age group. Overall, a quarter of UK adults – 12 million people - expect to face financial difficulties paying their housing costs over the next 12 months.

In a complementary survey of CIH Members, nearly 80 per cent of housing professionals indicated that demand for rented accommodation had grown over the past 12 months. And 84 per cent of respondents reported increasing demand for their debt advice and counselling services. The results of both surveys will be published in full at the Chartered Institute of Housing’s Annual Conference and Exhibition in Harrogate next week.

CIH Chief Executive, Sarah Webb, said: “We’ve driven too many people into unsustainable owner occupation and we need to make a far better job of putting renting and owning on a level playing field. A generation has grown up believing it has to own at any cost – in part because we haven’t provided them with decent information about the alternatives. We can’t repeat this mistake with future young people”.

*ENDS*

News release issued on behalf of the CIH by Jill Dwyer, CIH Press Office, Octavia House, Westwood Way, Coventry CV4 8JP. Telephone: 07786 716961. Email: press@cih.org.

Notes to Editors:

1. The Chartered Institute of Housing (CIH) is the professional body for people involved in housing and communities. We are a registered charity and not-for-profit organisation. We have a diverse and growing membership of over 22,000 – both in the public and private sectors – living and working in over 20 countries on five continents across the world. Our members work for local authorities, housing associations, Arms Length Management Organisations, Government bodies, educational establishments and the private sector. Many tenants and residents are also members. We exist to maximise the contribution that housing professionals make to the wellbeing of communities. Further information is available at: www.cih.org.

2. The YouGov survey of 2,028 UK adults revealed that 70 per cent of respondents said that they still believed homeownership to be a good long term investment; 14 per cent agreed that renting is cheaper and safer than home ownership; eight per cent said they were less likely to encourage their family to aspire to home ownership; four per cent said that they were not happy with their current housing arrangement and needed advice; and 56 per cent said that young people are particularly affected by the housing crisis. 77 per cent of respondents said that ownership was their ideal living situation before the recession, but 72 per cent said it was their ideal living situation in their current circumstances. This 5 percentage point difference equates to approximately 2.4million adults based on 5 per cent of the UK adult population (over 18s) of 47,864,400* (*source ONS mid 2007 estimates). Respondents in the 25-34 age group showed a 14 percentage point drop in preference for home ownership, with 83 per cent saying that home ownership was their ideal living situation before the recession and 69 per cent saying that home ownership was their ideal living situation in their current circumstances. In the 18-24 age group 37 per cent said that home ownership was their ideal living situation in their current circumstances. Five per cent of all respondents who own a home with a mortgage said that they were currently facing negative equity; six per cent said they expect to face negative equity; and one per cent said they both currently face and expect to face negative equity in the next 12 months. In the 25-34 age group 13 per cent of respondents who own a home with a mortgage said that they were currently facing negative equity; fourteen per cent said they expect to face negative equity; and one per cent said they both currently face and expect to face negative equity in the next 12 months.

The survey also revealed that 25% of respondents said that they expected to face financial difficulties paying their housing costs in the next 12 months. 25% of the UK adult population of 47,864,400 gives a total of 12million people.

All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2028 adults. Fieldwork was undertaken between 19th - 21st May 2009. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).