Think tank reveals a fall in home ownership in major cities

Surveying_Blog_PostFinding from the think tank, Resolution Foundation, have revealed that some major cities, including Manchester, have seen a marked dip in home ownership since the early 2000s.

The think tank cites affordability constraints as one of the main barriers to home ownership in key UK regions.

In Greater Manchester alone the think tank found that the proportion  of home owners dropped from 72% in 2003 to 58% in 2016. Other locations that have experienced significant falls include the West Midlands, outer London and West Yorkshire.

Commenting on these findings, Matthew Whittaker, chief economist from the Resolution Foundation, said: “What we particularly have seen since 2002-03 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 earnings … and we no longer have the route through 100% mortgages and the like for getting on to the housing ladder.”

Buyers now pay more than £150,000 for a new home compared to just under £30,000 in the 1980s.