A new report highlighted that home-ownership in the UK is at its lowest since the 1980’s - with Great Manchester, South and West Yorkshire and the West Midlands area having experienced double-digit falls since the property peak in the early 2000’s.
The report issued by the think tank Resolution Foundation has stated that at its peak homeownership was at 71% in 2003, since then it has fallen steadily by 8%.
They attribute this shift to more young people renting than buying, people in the private rental sector spend more of their income on housing than those who own a property with a mortgage, which has made it even harder for first-time buyers to save up for mortgage deposit. There is also an increased sense of insecurity associated around renting a property with a short-term contract.
The English Housing Survey report issued last week also highlighted the problems associated with young people being able to afford to buy a home in the UK. They said that their study showed that fewer than one in ten tenants were renting because they liked where they were, with 1% stating that they preferred renting because of the flexibility that renting offered.
Stephen Clarke, policy analyst at the Resolution Foundation stated: ‘London has a well-known and fully blown housing crisis, but the struggle to buy a home is just as big a problem in cities across the North of England. The chances of owning a home have fallen fastest in Greater Manchester over the last decade, though the Leeds and Sheffield city areas have also experienced sharp drops.’
‘These drops are more than a simple source of frustration for the millions of people who aspire to own their home. The shift to renting privately can reduce current living standards and future wealth, with implications for individuals and the state,’ he pointed out.
‘We cannot allow other cities to edge towards the kind of housing crisis that London has been saddled with. It’s encouraging that the new Prime Minister has talked about tackling the housing deficit. She may find that making good on this promise could secure as important a legacy as negotiating a successful exit from the European Union,’ he added.
If you are first time buyer looking at getting on the property ladder then why not get in touch with your local branch of Intercounty or call our team on 01279 655248.
Source: Property Wire