Mortgages may be held by only 25% of households by 2025.
Only 25% of households may have access to mortgages by 2025 according to recent predictions.
A report commission by Cambridge University has advised that if the UK economy continues in its present state then in around 13 years only 1 in 4 will have access to a mortgage deal.
The report by the Resolution Foundation and Shelter has looked at how the UK housing market could change if the present economic trends continue.
It concluded that low levels of home building, restricted mortgage lending and poor income growth will ensure that the UK economy remains weak. This then could result in only 27% of households being able to afford a mortgage, the proportion of householders renting will then increase to 22%.
It is estimated that lenders further restrictions to their mortgages could mean 36% of households in London will be renting by 2025, it is also estimated that by 2020 more families will be renting than living in their own mortgaged properties.
The chief executive of Shelter commented advising that the report reveals that home ownership will continue to fall while renting will become a way of life for many British families.
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