Home Ownership Becoming Increasingly Difficult

Posted by Richard Ward in ,

Image courtesy of Flickr, Creative Commons

A new report released by The Resolution Foundation has found that within major English cities, home ownership is becoming increasingly difficult for buyers with Manchester in particular seeing the sharpest declines.

The proportion of home owners has dropped from 72% in April 2003 to 58% this year in Greater Manchester, whilst the metropolitan area of the West Midlands and outer London have also witnessed double-digit falls.

One of the main contributing factors has been the lack of income growth, which hasn't been able to keep up with price house increases. It's been estimated that the average first time buyer paid just under £30,000 for their new home in the 1980s compared with more than £150,000 now.

The Report by The Resolution Foundation found that home ownership in England peaked in 2003 at 71% of the population, but it had now fallen back down to just below 64%. The latest analysis indicates that those struggling to own a home is not just a London dominated issue.

Interestingly the analysis also pointed to the fact that the fall in home ownership coincided with a rise in renting from private landlord, with the proportion of private tenants increasing from 11% in 2003 to 19% last year.

Theresa May touched on the issue in her first speech as PM, referring to the injustice in that if you're young, you'll find it harder than ever to own your own home.

Charities such as Shelter have called on the government to do more to tackle a shortage of genuinely affordable homes.