Private Housing

The stock of housing in the UK includes privately owned and occupied houses and apartments, privately rented and local authorityrented accommodation, and property managed by housing associations.

 

In the UK, privately owned property is either freehold or leasehold. Freehold ownership means that the land is owned as well as the property on the land, and leasehold means the land is not owned, and the owner buys the right to use the land and property for a period of time, usually over 100 years when the lease is first granted. As each year goes by, the lease becomes shorter until the land and property reverts to the landlord. It is common for leaseholders to purchase an extension to the lease when it falls below 60 years.

 

Mortgages

 

The majority of freehold and leasehold property is bought with the aid of a long-term loan, called a mortgage. Mortgages can be for any period of time, but 25 years is the most common.  Mortgage repayments usually include two elements; repayment of the loan, called the capital, and repayment of the interest on the loan.

 

 

Privately rented property

 

With privately rented property, the landlord rents out property through a short tenancy agreement, usually for 6 months, though this can be renewed. Tenants typically pay a monthly rent, though other payment periods may exist.

 

 

Local government - local authority - rented property

 

In the case of local authority rented property, tenants pay a weekly or monthly rent, which is commonly subsidised, and below commercial market rates. Property is allocated to individuals based on need and not just their income. Most local authorities do not have sufficient properties to meet demand and have long waiting lists.

 

 

Housing Association property

 

Housing Associations offer affordable properties for part-ownership and part-rental.