Affordability problems hit home ownership

New figures have shown that the number of owner-occupied homes in England fell by 83,000 in 2007, the largest decrease on record.

This fall, based on government data, was the second in succession and reduced the number of homeowners in the UK to the lowest proportion of households since 1998, Halifax Bank of Scotland has revealed.

It also noted that the longer-term trend has been for the south to be particularly badly affected by the situation, which it blames on affordability problems.

While home ownership rose by 345,000 in the north between 2001 and 2006, the south saw a drop of 92,000 during the same period, the figures showed.

Halifax chief economist Martin Ellis said: "The figures for owner-occupancy clearly demonstrate that these affordability issues are most pronounced amongst younger people and in southern parts of England."

Those faced with affordability problems may consider the self build option as an alternative way of getting on the housing ladder.

Figures from Halifax last month showed that three of the four regions with the highest increases in house prices in 2007 were in the south.


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