Home ownership has slumped by nearly a fifth in Ireland in just 20 years, new figures show, writes Sarah Slater.

Some 61% of people own their homes, either with or without a mortgage, a survey of 1,000 people for insurer Aviva found.

However, the overall home ownership rate 20 years ago, in 2005, was almost 75%. Among homeowners, 32% own the property outright and 29% have a mortgage.

Separate data from the Central Statistics Office (CSO) shows the home ownership rate in 2016 was just below 68%, indicating that the percentage of homeowners in Ireland was higher in 2005 than in 2016.

Unsurprisingly, 70% of over54s own their home outright with no mortgage, while 48% of 45-to-54-year-olds own their home with a mortgage, and just 19% of those aged 55+ continue to have one.

A further 23% of 18-to-24- year-olds are living with family/friends and not paying rent, with a further 21% of that age cohort living with family/friends and paying rent.

The survey by Aviva has shed additional light on the current housing crisis.

It revealed that 24% of people are renting in the private rental market, 8% are living with family or friends without paying rent, and 7% are living with family or friends while paying rent.

The survey also delved into the reasons behind renting.

The largest group of renters at 34% are saving for a future home purchase, highlighting the ongoing aspiration for home ownership.

However, nearly one in three survey respondents (29%) cited the lack of affordable housing options as the primary reason for renting.

Ongoing financial constraints are also a significant factor impacting the housing market, with 23% of renters believing they will never be able to buy a home.

Interestingly, 14% of respondents prefer renting, with 6% of them valuing the flexibility and greater mobility that it offers them.

The financial constraints preventing those hoping to buy their home was highest amongst those aged 55 plus at 45%, and amongst women at 28% versus men at 19%.

More men (38%) than women (29%) are currently saving for a future home purchase, which is highest amongst those aged 18 to 24 at 56% and those aged 25 to 34 at 43%.

The lack of affordable housing options to buy in the country is evident across all age cohorts, and higher amongst female respondents at 33% than men at 26%.

Julie Frazer, underwriting product lead at Aviva, outlined that the research highlights the extent of home ownership and the diverse reasons behind renting in Ireland currently.

“While many people who are renting are doing so in the hope that they can save enough to get on the property ladder, it would appear from the research findings that there is a dearth of affordable properties available in the market for first-time buyers,” remarked Ms Frazer.

“We understand the challenges faced by those aspiring to own a home, particularly as many are renting in the private rental market whilst trying to save.

“However, it is also important to recognise that for some, renting is a conscious choice that offers flexibility and mobility.”

Housing campaigner David Hall, of the Irish Mortgage Holders Organisation, blasted the state of affairs revealed by the figures.

“We are going backwards simply because of home affordability,” he remarked.

“What we are facing is a big challenge no matter what age group we are talking about.

“What is feeding into this is an unstable rental market. Ireland needs a stable rental market as they do in other countries where 30-year-rent contracts are the norm.”

He added: “As we don’t have that here, it is leading so many people to be anxious about getting onto the home ownership market.”