The number of home owners across England has fallen to the lowest level in the last 30 years.
A housing crisis has been created by a rising gap between house prices and earnings. The problem isn’t confined just to London, where property prices have escalated, but also to cities like Manchester. According to a study conducted by Resolution Foundation, cities in the West Midlands and Yorkshire are also seeing a drop in the number of home owners.
In April 2003, 71% of people owned their own home, either with a mortgage or outright. However, in February 2016, the figures had dropped to just 64%, the lowest it has been since 1986. Just after this period, the Conservatives introduced the right to buy initiative for tenants of council properties. At this time, the mortgage industry had experienced deregulation which had created a lift in the housing market.
The analysis produced by the think tank highlights the challenges faced by the new Prime Minister, Theresa May, as she pledged to tackle the housing problems. May issued a warning that young people will find it hard to get onto the property ladder in future, unless the issues are dealt with. At the start of 2016, only 58% of households were home owners in Greater Manchester, in comparison with 72% in 2003.
Borrowers who are struggling to buy a property may find that a CeMAP qualified mortgage adviser can give them some advice and help them find a suitable mortgage.
