While homeowners do remain in the majority, at 65.3%, this is the lowest proportion of households since 1987.
David Newnes, director of LSL Property Services, said:
“Sales activity and prices in London are charging along at a furious pace which is dragging national house prices up on its coat tails. Take the capital out of the equation and the average rate of house price growth in England & Wales falls to 1%.”
On average, house prices have risen by £7,000 over the last year, with sales rising by 8%. LSL have calculated the average house price for January to be £227,478.
Campbell Robb, chief executive of Shelter, comments:
“As saving for a home of their own becomes increasingly out of reach, many have no choice but to live in rented homes for years on end.”