On average across the regions, the more expensive markets tend to have high levels of home ownership and much lower levels of social housing.

In the most expensive equity rich markets, 39% of all housing is unmortgaged owner-occupied stock with just 10% of housing in the social rented sector. By contrast, in the least expensive markets only 22% of all housing is held by owner-occupiers without a mortgage, while social housing makes up 27% of the stock.

Compared to the average for all of the regions, levels of both social and private rented housing are lower in high value markets of the affluent South East. Equally, there are higher levels of owner-occupied housing, with owners holding high levels of housing equity.

In London, the picture is different. Levels of social housing are higher across the board. The big difference is that owner-occupation levels peak in the middle value bands. Investors own significant amounts of private rented stock in higher tiers of the market. Such stock is occupied by those either choosing to rent or being forced to because of home ownership costs.

Even in these areas, values tend to be dictated by owner-occupiers and the level of equity they hold rather than the mortgage debt they require.

Among the wider owner-occupied market, the extent to which equity is dominant is reflected by the ratio between unmortgaged and mortgaged housing. This ratio is highest in the most valuable markets. Across the regions, unmortgaged owners outnumber mortgaged owners in the four most expensive price groups.

The South West generally has the highest ratio of unmortgaged to mortgaged owner-occupiers. In London, the ratio is well below other regions in all but the most expensive markets, indicating higher proportions of mortgage debt amongst owner-occupier households.

Taken from
Spotlight: A Housing Market Divided