The team at Confused.com mortgages have compiled a report looking at how the property market has changed over the last several decades, including a breakdown of the percentage of homeowners paying off a mortgage against those who own their home outright.
Homeowners paying off a mortgage vs homeowners who own their home outright:
| Year | Percentage of homeowners who own the property outright | Percentage of homeowners paying off a mortgage | All owner-occupiers as % of all households |
| 1992 | 25.1% | 43.1% | 68.2% |
| 1995 | 25.4% | 43.1% | 68.5% |
| 2000 | 28.4% | 42.2% | 70.6% |
| 2005 | 30.3% | 40.3% | 70.7% |
| 2010-11 | 32.0% | 34.0% | 66.0% |
| 2016-17 | 34.1% | 28.4% | 62.6% |
| 2017-18 | 33.9% | 29.6% | 63.5% |
| 2018-19 | 34.4% | 29.4% | 63.8% |
| 2019-20 | 34.9% | 29.7% | 64.6% |
| 2020-21 | 34.7% | 30.1% | 64.9% |
| 2021-22 | 34.8% | 29.5% | 64.3% |
Over 2021-2022, there were 15.6 million owner-occupied households. These 15.6 million make up 64.3% of all households. This is a similar percentage to the last year (64.9%) and over the last decade.
The number of owner-occupied households in the UK has increased over the last 4 decades. In 1982, 59% of homes were owner-occupied. Today that figure is 64.3%.
Since 2013-14, there have been fewer people paying off a mortgage than people who own a house outright. Last year, 34.8% of households were outright owners, and 29.5% were paying off a mortgage.
Further Study Insights:
- It would take someone earning today’s average salary 0.02 years (or about 1 week) to save enough to put down a 20% deposit on a house in 1940.
- Most of those aged 65 or over own their own homes outright. In 2021 – 2022 only 5% of owner-occupiers 65 or over had mortgages. This compares to over 95% of owner-occupiers aged 16-24 who bought their homes with a mortgage.
- The number of owner-occupied households in the UK has increased over the last 4 decades. In 1982, 59% of homes were owner-occupied. Today that figure is 64%.
- The average property price in the UK in January 1969 was only £3,757. As of January 2023, the average property price has risen to a record £286,762. This is a 7,533% increase in house prices from 1969 to 2023 or an annual increase of 8.36% every year.
- Over half of Millennials bought their first home using funds gifted to them from family and friends—a further fifth used funds from inheritance, the highest of any generation.
