45% of all mortgage debt borrowed since 2004

Some 45 per cent of the value of all mortgages has been borrowed in the previous three years, according to the department for Communities and Local Government (CLG).

The finding is contained in the CLG's comprehensive study of property trends in England.

"Housing in England 2005/6" was compiled from 18,386 household interviews - beginning in 2005 – with the results broken down into several key areas.

Trends in tenure

There were 14.6 million owner-occupied properties in England in 2006, constituting 70 per cent of the total, in comparison to 3.7 million social renters (18 per cent) and 2.5 million private renters (12 per cent).

There were, however, regional variations.

Owner occupation in London was only 56 per cent in 2006, with social and private rental accommodation making up 24 and 19 per cent of the market respectively.

And while the growth in homeownership has slowed since the early 1990s, the total number of home owners has continued to grow – up from 9.9 million in 1981 to today's level of 14.6 million.

The social rented sector, however, has been in decline; falling from four million properties in 1999 to the 3.7 million recorded today – this is largely due to tenants continuing to exercise their "right-to-buy".

The average household size in 2006 stood at 2.4 persons.

The government also finds 82 per cent of people in England live in houses or bungalows, with 17 per cent living in flats or maisonettes.

Some 85 per cent had access to a garden – rising to 95 per cent among owner occupied properties – whereas a further five per cent had a patio and a final one per cent had a roof garden or large balcony.

New households

Up to two million households moved in 2005/6 – the lowest number since 2001.

Owner occupied movers made up just 34 per cent of all moves.

As many as 56 per cent of all households which had moved in the previous three years found new accommodation within a five mile radius.

In the rented sector, private renters were much more likely to move than social renters.

Private renters spent an average of 1.6 years in a property, compared to an average of 6.7 years for social renters.

Finally, the annual average income for a couple setting up a new owner occupied household during 2005/6 was some £26,288.

Owner occupiers

Of the 14.6 million homeowners in England, 5.5 million were first-time owners.

Some 56 per cent of homeowners were purchasing their property with the use of a mortgage, compared to 44 per cent who owned their home outright; of which 29 per cent had successfully paid off a mortgage, 12 per cent had purchased their property at the outset and three per cent had come into their property through other means, for example inheritance.

Interestingly, 45 per cent of all outstanding mortgage debt in England was held in mortgages starting after 2004.

This is partially explained by rising prices in the property market, but also due to longstanding mortgage holders remortgaging in recent years to release equity or simply take advantage of better deals.

The government also finds there are 242,000 households with second homes located in England and 36,000 households with a second property in Wales or Scotland.

A further 211,000 households had a second home outside the UK; of which 34 per cent were in Spain and 23 per cent were in France.

Private renters

Private rental accommodation has been in long term decline, falling from around 75 per cent to a nadir or just below nine per cent in the 1980s.

However, a downturn in the property market and an end to tenancy regulation led to a slight increase in the 1990s, and today private rented accommodation makes up 12 per cent of the market.

Private rent in the south of England was £148 a week, compared to £82 in the north.

However, London was the most expensive with an average weekly rent of £185.

To see the full department for Communities and Local Government report (PDF format) click here.