The Resolution Foundation reports home ownership lowest for 30 yearsMake Text Bigger
The Think Tank, Resolution Foundation, has reported home ownership is now at a 30 year low.
Using data from the Office for National Statistics Labour Force Survey (LFS) the Resolution Foundation is reporting home ownership to have fallen from its high point in 2003 at 71% of the population to under 64% today.
The highest fall reported in a major city is Manchester with a drop from a high point of 72% home owners to 58%.
The average home purchase has increased from £30,000 in the decade of the 80s to £150,000.
The figures show that in England private renting has expanded from 11% in 2003 to 19% in 2015. In Manchester households renting from the PRS have more than tripled in the same period increasing from 6% to 20%.
Statistics for home ownership in the rest of the UK show:
- Northern Ireland fell from 73% to 63%
- Scotland from 69% to 63%
- Wales from 75% to 70%
In Scotland the Right to Buy scheme was scrapped as of yesterday in an effort to make sure there are still some affordable rental options for people unable to purchase their own homes.
Chief economist of the Resolution Foundation, Matthew Whittaker said, “what we particularly have seen since 2002 to 2003 is that incomes simply haven’t kept pace with house prices, so it’s not just that house prices have gone up.
We had access to lots of relatively easy credit and the position we’re in now is that credit has been turned off. We have this sense now that house prices have become detached from people’s earning’s and we no longer have the route through 100% mortgages and the like for getting on to the housing ladder.”
Stephen Clarke, policy analyst for the foundation, said difficulties were no longer only a “London-centric issue. 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.”
Theresa May will today chair the first meeting of the new Cabinet Committee on Economy and Industrial Strategy, which was formed to focus on building up Britain’s industrial strategy and promoting growth across the country.
It is reported that the housing crisis will be high on the agenda for the Prime Minister having previously said, “young people will find it even harder to afford their own home. The divide between those who inherit wealth and those who don’t will become more pronounced. And more and more of the country’s money will go into expensive housing.”
What is the Resolution Foundation:
From their website http://www.resolutionfoundation.org/
“The Resolution Foundation is a non-partisan and award-winning think-tank that works to improve the living standards of those in Britain on low to middle incomes.
We conduct authoritative analytical research on living standards in the UK and produce effective policy solutions that help shape the debate on economic and social policy. To do this we work across a wide range of issues such as low pay and the minimum wage, the future of the labour market, social mobility, reforming the tax and benefit system, household debt, childcare and housing policy. We hold a regular programme of events drawing on experts from a diverse range of backgrounds – academia, employers, the voluntary sector and the City. We engage with politicians from across the political spectrum.”
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