Home ownership is set to fall to its lowest level since the mid-1980s over the next decade, a study by the National Housing Federation (NHF) has predicted, pointing to a need for urgent investment in
affordable homes.
High house prices and strict lending criteria from mortgage providers were blamed for sending home ownership into decline by the federation, which represents housing associations in the UK.
The proportion of people living in owner-occupied homes is expected to fall from 72.5 per cent in 2001 to 63.8 per cent in 2021, and the north-east will be the only area of the country to experience a rise.
Meanwhile, the majority of people living in London are predicted to become owner-occupiers by 2021.
David Orr, chief executive of the NHF, said home ownership is increasingly becoming the "preserve of the wealthy", particularly in areas like the capital.
"At the heart of this crisis is a chronic shortage of new homes," he went on to say.
"Despite the overwhelming need to increase supply, house building has slumped to a 90-year low."
The NHF is now calling for more government investment in affordable housing, which would stimulate a wider, faster economic recovery and help to fix "broken" housing markets.
Housing minister Grant Shapps insists that the government is working to increase the UK's supply of
affordable homes, setting aside thousands of acres of public land for housebuilding.
"I want to see a period of house price stability so that more homes become affordable, but I am also determined that we pull out all the stops to give hard-working first-time buyers the help they need," he said.
However, Labour recently criticised the minister after figures from the Home Builders Federation revealed that planning permission for new homes dropped by 24 per cent to 25,171 homes between April and June this year.
It is estimated that around 240,000 new homes will need to be built each year in order to meet the existing shortfall.
See Also: Property News (6705)
Date Published: 30 August 2011
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