Homeownership reaches lowest level in 30 years in England a new report by thinktank Resolution Foundation has revealed.
The widening gap between earnings and property prices have been blamed for the drop in the amount of people who own property.
The report highlights that the problem is country wide and extends to locations outside of London.
“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,” Stephen Clarke, Resolution Foundation, commented.
Greater Manchester, for example, has seen a massive drop in the amount of people owning their own house since 2000s.
In 2016 just 58% of households in Manchester were homeowners. This figure marks a significant drop to the 72% recorded in 2003. Read more…
Government to Build more Homes
According to Yorkshire Building Society, house building targets across the UK have be missed by 1,199,180 since 2004.
The huge housing deficit and rising property prices has meant that homeownership is out of the reach of many first-time buyers.
The Government must build 300,000 homes each year in England to help solve the housing crisis, an increase of 50% from its current target (House of Lords Economic Affairs Committee) however, it seems highly unlikely that these targets will be met.
Can Build-to-Rent Help?
Private developers and investors have provided a much needed lifeline to the UK’s property market in the form of build-to-rent sector.
Developments like The Residence Manchester from Experience Invest offer property investors a way to purchase off plan apartments with a discounted price.
The development will contain 300 new-build apartments ranging from 1, 2 and 3 bedroom units.
The city centre location will provide much needed housing for the local area. However, The Residence won’t be just another new-build development in Manchester’s city centre.
The landmark development will soar 33 storeys and will boast brilliant waterfront and city centre views. It is ideally positioned to cater to tenants living and working in the city or for those who are employed in the nearby Media City (home of the BBC).
It is yet to be seen if the build-to-rent sector can address the fact that homeownership reaches lowest level in 30 years however, an injection of private investment will no doubt boost the level of housing in some areas across the country.