Home ownership plunges to lowest levels since 1986 due to sky high house prices

HOME ownership has fallen to the lowest levels since 1986 as sky-high house prices plunge Northern cities into a London-style housing crisis, a report warns today.

Only 64 out of 100 people now own their own property in England, down from a peak of 71 in 2003.

Greater Manchester, West Yorkshire and the West Midlands have all seen double digit falls in recent years, as people struggle to get the cash together for a deposit, the Resolution Foundation found.

Despite the focus on London, Manchester has been hardest hit with a 14 per cent drop in people on the housing ladder from a peak of 72 per cent in 2003 to 58 per cent last year.

In Inner London just 36 per cent of people own their own home.

Meanwhile the proportion of people renting from private landlords in England has soared from 11 per cent in 2003 to 19 per cent last year.

It raised fears that millions of youngsters are getting stuck in a rental trap as increasing costs mean they can never save enough for a deposit.

Anne Baxendale from housing charity Shelter said: “Sky-high rents are leaving many families struggling to make ends meet each month, let alone save up enough for the deposit on a home.

“Far from being the stepping stone it once was, many young people and families are now facing a lifetime stuck in expensive and unstable private renting.”

Stephen Clarke, policy analyst at the Resolution Foundation, said: “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.

“We cannot allow other cities to edge towards the kind of housing crisis that London has been saddled with.”

The Department for Communities and Local Government said more than 300,000 people have been helped into home ownership through government-backed schemes since 2010.

But a spokesman admitted there is “more to do”.