By Max Clarke
A crisis in the UK housing market has seen ownership plunge to its lowest levels since the 1980s, as rental and house prices soar, a study shows.
Home ownership will shrink to 63.8% over the next decade, according to the report by the National Housing Federation, as price hikes and muted wage growth effectively lock a generation out of the housing market.
“With home ownership in decline, rents rising rapidly and social housing waiting lists at a record high, it's time to face up to the fact that we have a totally dysfunctional housing market,” said David Orr, the Federation’s Chief Executive.
At the heart of the problem, the Federation explain, remains a chronic under-supply of new homes. In 2010/11 just 105,000 homes were built in England- the lowest level since the 1920s. Plans for more than 220,000 new homes have been abandoned by local authorities since the Government announced the abolition of regional house building targets last year.
More government investment in affordable housing would stimulate a wider, faster economic recovery and help fix our broken housing markets, according to the Federation.
“Home ownership is increasingly becoming the preserve of the wealthy and, in parts of the country like London, the very wealthy,” continued Orr. “And for the millions locked out of the property market the options are becoming increasingly limited as demand sends rents rising sharply and social homes waiting lists remain at record levels.”
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