The Resolution Foundation’s analysis of the LFS found that home ownership in England peaked in 2003 at 71% of the population and had now dropped to just under 64%.
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Across the United Kingdom, home ownership has dropped 6.8 per cent from peak of 70.9 per cent in 2004.
The Resolution Foundation found the proportion of people owning their own home has plummeted across every part of the United Kingdom since their peak in the early 2000s, with Greater Manchester seeing the biggest fall.
Stephen Clarke, policy analyst for the foundation, said difficulties were no longer only a “London-centric issue”.
In England house ownership rates have fallen seven per cent from a peak of 70.8pc in April 2003 to 63.8pc February 2016, while across the United Kingdom it has dropped 6.8pc from its October 2004 peak of 70.9pc.
In Scotland the Right to Buy scheme was scrapped as of yesterday in an effort to make sure there are still some affordable rental options for people unable to purchase their own homes.
This is despite the average home in the Manchester area costing £146,381, less than a third of a typical home in London, according to the Office for National Statistics.
In South Yorkshire, home ownership stood at just 58.4 per cent, a 9.8 per cent drop on its peak over the last decade, when it stood at 68.2 per cent in October 2005.
The fall corresponded with a near doubling in the proportion of private renters across England, up from 11 per cent in 2003 to 19 per cent in 2015.
The research reveals that the housing crisis has now spread well beyond London and the southeast with Greater Manchester experiencing sharper falls than the rest of the country.
Do you still aspire to own your own home, or have you resigned yourself to renting?
Anne Baxendale, head of policy and public affairs at homeless charity Shelter, said: “With house prices now completely out of step with average wages, sadly it’s no surprise that home ownership in Manchester is declining so drastically”.
It is reported that the housing crisis will be high on the agenda for the Prime Minister having previously said, “young people will find it even harder to afford their own home”.
‘The shift to renting privately can reduce current living standards and future wealth, with implications for individuals and the state, ‘ he said.
The proportion of private renters in Greater Manchester has more than trebled from 6 per cent to 20 per cent.
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The return of mortgages for borrowers with small deposits has brought first-time buyers back to the market, but the analysis underlines how great the struggle is to meet today’s new high house prices.
