Low-income homeowners are not as likely to experience poverty to the same extent as low-income tenants, even if the homeowners have less money coming in.
Research from the Department for Work and Pensions shows the characteristics of low-income homeowners and their circumstances. The characteristics of low-income homeowners differ significantly from those of tenants.
Lone parents without paid employment manage a quarter of low-income tenant households, while this group constitutes less than 5% of homeowner households. They have found that 7 out of 10 low-income homeowners own their homes outright, and suggest that the reason for this is that 6 out of 10 low-income homeowner households are headed by someone over 60.
Among younger age groups, low-income homeowners are less likely to have a mortgage than higher income homeowners, and face serious difficulties such as falling into arrears.
Our view
We think the statistics speak for themselves. One problem though for people who do own their own homes in later life is that they are likely to have to pay for their own personal and residential care whereas a tenant may not have to.
See our site Care Fees Adviser.com to find out about losing your home when you are alive!