Homeownership Drops To 30 Year Low, Report Reveals

A report from the Resolution Foundation has found that homeownership rates have fallen to their lowest level in 30 years. The worrying findings point to a housing crisis that has escaped London and now threatens to engulf the whole country.

The current level of homeownership is 63.8 per cent, a level last seen in 1986. Since then, the average house price has rocketed from £30,000 to £211,000 in May 2016 and most simply cannot afford to enter the housing sector. Homeownership peaked in the early 2000s at around 71 per cent, with no-deposit mortgages allowing many to make a first step on the property ladder.

The largest drops in ownership were seen in Greater Manchester and Outer London, which saw falls of 14.5 and 13.5 per cent respectively. The West Midlands and Northern Ireland also saw double-digit drops in the proportion of homeowners.

While ownership rates have dropped, private rentals have soared. The associated costs of renting are much higher however, with those renting paying seven per cent more for housing than their mortgage-paying counterparts.

The Resolution Foundation report also highlights the risks of having larger numbers of people in the private rental sector, and warned that unless action is taken this issue could have serious implications for the future.

Amid calls for reforms of the tenancy laws, a spokesperson for the Department of Communities and Local Government pointed out that more than 300,000 people had been helped into homeownership through its help-to-buy schemes since 2010.

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