Home ownership has seen its sharpest fall since the early 2000s, according to research by the Resolution Foundation.
Data from the Labour Force Survey shows that home ownership now sits at 63.8%. The last time the number of home owners was at this level was 1986.
In 2015 the average first-time buyer purchasing a home topped £150,000 with prices and deposits continuing to rise.
Buyers in central London paid on average £330,000, resulting in just a third of households being owned.
Areas which saw the sharpest fall in home ownership:
- Manchester dropped from 72% in 2003 to 58% in 2016
- Northern Ireland fell from 73% in 2006 to 63% in 2016
- Scotland dropped from 69% in 2004 to 63% in 2016
- Wales decreased from 75% in 2006 to 70% in 2016.
In a blog post for the Resolution Foundation, research & policy analyst, Stephen Clarke, comments:
“This matters not just because of the frustration it brings for those unable to buy, but because of its impact on living standards too.
Longer-term, this new housing reality also means that younger generations face more uncertain retirements, with less wealth to fall back on and potentially spiralling Housing Benefit bills.”