3. Tenure

Introduction

The Family Resource Survey (FRS) collects information on tenure types for each household. This section contains information on households whose accommodation is owned outright i.e. households which have paid off any mortgage or loan used to purchase the property, householders buying with the help of a mortgage and tenants renting in the social or private rented sector.

Analysis

Figure 3.1 (Supplementary Table S3.1 shows data figures) shows how household tenure has changed over the time period2003/04 to 2013/14, it is notable that in 2003/04 the percentage of households in the social rented sector (17per cent) was almost twice the percentage in the private rented sector (10per cent). However by 2013/14 the percentage of households in the social rented sector had fallen by 3 percentage points to 14per cent, whereas the percentage of households in the private rented sector had increased by 11 percentage points to 21per cent. The percentage of households owned outright has increased from 31per cent in 2003/04 to 37per cent in 2013/14. In contrast, the percentage buying with a mortgage declined by 12 percentage points between 2003/04 and 2013/14 (41per cent to 29per cent).Table 3.1 shows that NI is comparable to the UK as a whole regarding tenure.

Figure 3.1: Households by tenure from 2003/04 to 2013/14

Figure 3.2looks at tenure by age of the head of the household for 2003/04 and 2013/14and shows that growth in the percentage of owning outright is reflected in all the age groups with the exception of the 25-34 age group which remained at 4 per cent.The reduction in the percentage of households buying with a mortgage is most pronounced in the younger age groups. Similarly the growth in the percentage renting privately is concentrated in the younger age groups. For example, the percentage of households headed by someone aged 25-34 years that are in the privately rented sector has increased from16 per cent in 2003/04 to47 per cent in 2013/14, an increase of31percentage points. Over the same period, the percentage buying with a mortgage in this category has decreased from 66 per cent to 35 per cent, a reduction of 31percentage points.

Figure 3.2:Housing tenure in NI by age of head of household in 2003/04 and 2013/14

Figure 3.3 (for data seeTableS3.2)shows that the median weekly household rent is higher for private renters than for social renters. Social sector rent levels and increases are controlled through government-set formulae set out in the housing regulator’s rent standard and Government guidance.

Differences may also, in part, reflect the difference in the type of properties in the sectors, with the private rented sector having a much wider and more varied range of stock.

Comparing the regions of the United Kingdom, Northern Ireland (and Yorkshire and the Humber,the North East, East and West Midlands and Wales) had the joint lowest ratio between median weekly private sector rents and social sector rents (1.3) and the highest was observed in Inner-London (2.5). This compares to the overall United Kingdom figure of 1.5.

Private rent is generally less expensive than mortgage instalments (repayment mortgages only) in all regions of the UK apart from London. Private rent is on average £12 less than mortgage instalments (repayment mortgages only) in Northern Ireland this compares to the UK average of £2 less.

Figure 3.3:Median weekly household rent/ mortgage instalment by region and tenure

Table 3.8 compares tenure to state support received. 71 per cent of all owner households are in receipt ofbenefit compared to 97 per cent of social sector rented households and 66 per cent of privately rentedhouseholds. In the social rented sector 78 per cent of households receive housing benefit whereas only 36 per cent of private renters receive housing benefit.

Notes for Analysis

  1. The social rented sector combines the categories “Rented from Northern Ireland Housing Executive (NIHE)” and “Rented from a Housing Association”. This is because some housing association tenants may wrongly report that they are NIHE tenants. For instance, where their home used to be owned by NIHE and although ownership has now transferred to a housing association, the tenant may still think their home belongs to the NIHE.
  2. Household rent will also be influenced by the size of the property. This has notbeen taken into account in Figure 3.3.
  3. Interest only mortgage payments are not included in Figure 3.3. This is because the interest only payment represents only part of the overall housing costs for these respondents and the cost of any capital repayment plan cannot reliably be separated from other savings and investments.
  4. In Figure 3.3, rent paid as part of an affordable shared co-ownership part-rent, part-buy with a mortgage) is included as part of the mortgage payment.
  5. Figures are rounded to the nearest percentage point and may notsum due to rounding.

Alternative Data Sources

Administrative sources:

  • The Housing Association Performance Indicators: indicators-2013-2014

Survey sources:

  • Northern Ireland HouseCondition Survey:
  • The Northern Ireland Housing Market, Review and Perspectives:

Different data sources relating to housing, including the FRS, are used in compendia publications. One such report is:

  • The annual Northern Ireland Housing Statistics

Detailed Tables

Contents and points to note when interpreting tables

The base used for all the tables in this section is households.

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Tables 3.1 to 3.4 provide information on tenure split by region, Local Government District (LGD), household composition and age of head.

Table 3.2 has been created from the combined2011/12, 2012/13 and 2013/14FRS survey cases. This is due to small sample size at the Local Government District (LGD) level in individual years. In 2013/14 Northern Ireland had 26 LGDsbut due to sample size, Cookstown & Magherafelt, Larne & Moyle and Omagh & Strabane have been paired resulting in 23LGDs being represented.LGDs which have been combined have been selected to satisfy sample size requirements, and geographical location. Due to the combined three year dataset being used the sample size for households in Table 3.2 will differ from the sample size for households in the other tables in the section.

Table 3.5 considers length of residency of head for different tenure types and therefore provides information on mobility of households.

Table3.6 provides information on weekly housing costs. Housing cost information is split by tenure. Housing costs in NI include: rent (gross of housing benefits), mortgage interest payments, structural insurance premiums (for owner occupiers), ground rent and service charges. In GB housing costs also include: water rates, community water charges and council water charges).

Table 3.7 provides information on weekly rent for households; rent figures include any Housing Benefit in payment.

Table 3.8 shows households by tenure and state support.

Key definitions used

Pease refer to the Glossaryfor definitions of key terms used in this section.

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Changes to tables between 2012/13 and 2013/14

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Prior to 6 April 2010, women reached State Pension age at 60. From 6 April 2010, the qualifying age for women has been gradually increasing. FRS data contained in this report was collected throughout the financial year 2013/14, during which the State Pension age for women increased from 61 years and 5 months to 62 years 0 months. The changes do not affect the state pension age for men, currently 65. This affects tables 3.3 and 3.5.

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Section 3

Supplementary tables

S3.1-Data for Figure 3.1:Households by tenure 2003/04 to 2013/14

S3.2- Data for Figure 3.3: Median weekly household rent and mortgage instalments by region/

country and tenure

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Table S3.2: Median weekly household rent and mortgage instalments by region/ country and tenure

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