Mortgage lending now supports 30% of housing stock
Mortgage lending now underpins 30% of England’s housing stock, rising to as high as 42% in the country’s most mortgage-reliant locations. At the same time, many areas of the market have seen a notable increase in the number of homes owned with a mortgage over the last three years, highlighting the continued strength and resilience of the lending sector.
That’s according to the latest market insight from award-winning mortgage adviser, Alexander Hall, who analysed current and historic figures on the total number of dwellings found across England before looking at what proportion of these dwellings are owned with a mortgage, as well as the average annual increase in mortgage-owned dwellings over the last three years.
The research shows that of the 25,616,116 dwellings across England, some 7,667,051 are owned with a mortgage, equating to 30% of the nation’s housing stock. Regionally, the South East is home to the highest proportion of mortgage-backed homes at 33%, followed by the East of England at 32% and the East Midlands at 31%.
However, when breaking the market down at local authority level, Alexander Hall found that it is the South East area of Wokingham that is home to the strongest mortgage market, with 42% of all homes owned with a mortgage. Dartford also ranks highly at 42%, while Bracknell Forest follows closely at 40%, underlining the concentration of mortgage-backed ownership across parts of the South East.
Looking across the rest of the country, the highest-ranking local authority within each region is as follows: –
East of England – Central Bedfordshire – 39%
East Midlands – South Derbyshire – 39%
North West – South Ribble – 37%
South West – South Gloucestershire – 37%
West Midlands – Bromsgrove – 36%
North East – Stockton-on-Tees – 34%
Yorkshire and The Humber – Wakefield – 32%
London – Bexley – 38%
Steady growth in mortgage-backed homeownership
The research by Alexander Hall also shows that the number of homes owned with a mortgage has continued to rise steadily and, across England, mortgage-owned dwellings have increased by an average of 1% per year over the last three years.
The East Midlands has seen the strongest regional growth over this period, whilst at local authority level, Rushmoor tops the table, with mortgage-backed dwellings increasing by an average of 4.1% per year over the last three years.
Richard Merrett, managing director of Alexander Hall, commented: “Nearly one in three homes across England is supported by a mortgage, and in some areas this proportion is even higher, which demonstrates just how important the mortgage sector is to keeping the housing market moving.
There’s no question that the shift away from ultra-low rates after over a decade required a period of adjustment but despite the increase seen in the cost of borrowing in recent years, mortgage-backed homeownership has continued to grow.
Of course, in areas where mortgage-backed ownership is particularly high, the value of experienced mortgage advice becomes even more important. A good adviser doesn’t just compare rates, they help borrowers understand the full range of options available and structure their borrowing in a way that supports both their immediate needs and long-term plans.”
Data Tables and Sources
*Dwelling stock and tenure data sourced from the Office for National Statistics, Subnational estimates of dwellings and households by tenure, England, 2024 release – latest available.
Analysis based on total dwellings and dwellings owned with a mortgage across England, including comparison of historic data from 2022 and 2023 to calculate estimated average annual change over the last three years.
View full data tables and sources online here.