28 June 2005 - Low income homeowners in Britain: Descriptive analysis
Research into Low Income Homeowners is published today by the Housing Research and Analysis Division of the Department for Work and Pensions.
The research was commissioned following the finding of Burrows and Wilcox (2000), that half the poor are homeowners. It aimed to establish the characteristics of low-income homeowners and their circumstances.
The report is based on analysis of a range of datasets, including the Family Resources Survey (2002/03 and 19095/96), the British Household Panel Study (1991-2002), the Families and Children Study (1999 and 2002), the Survey of English Housing (2002/03) and the English House Condition Survey (2001).
The research found that:
- The population of low-income homeowners differed markedly from the population of low-income tenants. Very few are under 30 or have dependent children. Most are over 60 and own their homes outright. Their living costs are relatively low and generally they appear to be managing on low incomes without experiencing hardship.
- The households that appear to be experiencing real problems are those who have both mortgages and very low incomes. These include families where one or more adults are self-employed or which contains a single person under 60.
- Most low income homeowners are less likely to experience hardship than low income tenants, even though their incomes are actually lower. Low income homeowners (and their homes) are more like higher income homeowners than low income tenants.
- Becoming a low income homeowner tends to be caused by a drop in income, while remaining in the same home. Many experience a recovery in income within a year or two. For most low income homeowners of working age, the experience is associated with a temporary drop in income.
- Seven out of 10 Low Income Home Owners own their homes outright; nearly half have savings; and there is a relatively low incidence of a lack of essential items other than leisure, holidays and nights out. Rates of car ownership are similar to the general population, while ownership of other household items is markedly higher than it is among low income tenants.
Notes to Editors:
- Low Income Homeowners in Britain: Descriptive Analysis is published on 28th June 2005 in the Department for Work & Pensions Research Report Series (Report number 251). A copy of the report can be downloaded from the DWP website: www.dwp.gov.uk/asd/asd5/rrs2005.asp
- The research was commissioned following the findings of Burrows, R. and Wilcox, S. (2000) Half the Poor: Home Owners with Low Incomes London: Council of Mortgage Lenders
- Prepared by DWPs Housing Research and Analysis Division
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