Kensington and Chelsea have the highest rate of outright homeownership across London, where 71% of homeowners are on the ladder without the help of amortgage, with the City of London, Westminster, Camden and Barnet also ranking as some of the capital’s housing equity hotspots.
That’s according to research by London lettings and estate agent, Benham and Reeves, who analysed data from the Office for National Statistics looking atthe balance between homes owned outright and those owned with a mortgage.
There are 15.8m homes either owned outright or with the help of a mortgage in England -- 9.3m of these are owned outright, meaning that 59% of homeowners own 100% of equity within their home.
Regionally, London is home to the lowest proportion of outright ownership at 55%.
The research by Benham and Reeves shows that 71% of homeowners own their home outright across the London Borough of Kensington and Chelsea with just NorthNorfolk home to a higher proportion at 72% across England.
Other London boroughs boasting a higher proportion of outright homeownership include the City of London (67.3%), Westminster (66.5%) and Camden (62.8%) where more than 60% of homeowners own 100% of their home’s equity.
Outside of the prime London market, Barnet (59.3%), Havering (59%). Harrow (58.6%), Brent (58.3%), Bromley (58%) and Richmond (58.8%) also sit within London’s top 10 housing equity hotspots.
London also accounts for some of the strongest growth in the number of outright owned homes in England.
Across London there has been a 71.2% increase in the number of homes owned outright over the last decade. In Tower Hamlets, this number has increased by 62.2% since 2012, with Greenwich (+62.2%), Newham (+56%) and Southwark (+50.8%) also making the top five largest increases at national level.
Marc von Grundherr, director of Benham and Reeves, said: “Homeownership is a journey that many embark on and the most exciting stage is, of course, getting that first foot on the ladder with a property we can call our own. Even now, with the higher cost of borrowing and wider market uncertainties, there remains a real urgency from serious buyers to climb the ladder. This is because they understand that the property market is subject to cycles but is underpinned by long-term growth and so bricks and mortar still holds high appeal as an asset class.
But getting onto the ladder is really only the start of the journey and while climbing it may take many years, the ultimate goal is to own our home mortgage free. For some, this may seem like a distant dream, particularly at present with the sharp increase in mortgage rates seen in recent months. However, it is a dream that the majority do come to realise and in some areas of the nation, over 70% of homes are owned outright.”
