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Home ownership falling in major English cities, says think tank

Home ownership falling in major English cities, says think tank

       
        By Kevin Peachey
        Personal finance reporter
   
   
   
            2 August 2016

            From the section Business


           
       

   
       
           
   
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                    The chances of owning a home have fallen fastest in Greater Manchester
               
            Major English cities - particularly Manchester - have seen the sharpest falls in home ownership since a peak in the early 2000s, analysis suggests.The Resolution Foundation said homes were becoming increasingly unaffordable for struggling potential buyers.The proportion of home owners dropped from 72% in April 2003 to 58% this year in Greater Manchester, it said.West Yorkshire, the metropolitan area of the West Midlands and outer London have also recorded double-digit falls.Explaining the falling rates of home ownership, Matthew Whittaker, chief economist from the Resolution Foundation, told the BBC's Today programme: "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."The average first time buyer paid just under £30,000 for their new home in the 1980s compared with more than £150,000 now, the think tank said.
               
               
               
               
               
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        The Resolution Foundation used data from the Office for National Statistics' Labour Force Survey (LFS).The report follows recent data from the government's English Housing Survey showing the total number of buyers has fallen by a third in 10 years, and those who do buy their first home increasingly rely on the bank of mum and dad for help.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%.The reduction in the proportion of people owning their own home was also recorded in other parts of the UK. The figures suggest home ownership:Fell from its 2006 peak in Northern Ireland of 73% to 63% now
Dropped from 69% in Scotland at its 2004 peak to 63% now
Decreased from 75% in Wales at its 2006 peak to 70% now
'Big problem'The Resolution Foundation said its analysis showed that the struggle to own a home was no longer just a "London-centric issue"."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," said Stephen Clarke, the foundation's policy analyst."The chances of owning a home have fallen fastest in Greater Manchester over the last decade, though the Leeds and Sheffield city areas have also experienced sharp drops."
               
               
               
               
               
           
           
        '£60,000 in rent'One area that was highlighted in the report was the metropolitan area of the West Midlands.It said ownership had fallen from 70% in April 2005 to 59% now.Mark, who lives in Dudley, said: "We've been renting for six years. We have paid almost £60,000 in rent.  "As much as I would love to buy my own house, it grieves me to rent, but we just can't get on the ladder due to the deposit. Instead of doing the Help to Buy scheme, the government should bring back 100% mortgages, and maybe help us with the deposit. "If the government was to pay the deposit, we could go out tomorrow and buy a house."Renting v ownershipThe think tank also confirmed that the fall in ownership corresponded with a rise in renting from private landlords. The proportion of private tenants rose from 11% in 2003 to 19% last year, it said. In Greater Manchester, the move was more pronounced - rising from 6% to 20% over the same period.While accepting that home ownership was rather a national obsession, it pointed out that those in the private rented sector spent more of their income on housing than their owners, and there was more insecurity in short-term tenancies."The shift to renting privately can reduce current living standards and future wealth, with implications for individuals and the state," Mr Clarke said. "We cannot allow other cities to edge towards the kind of housing crisis that London has been saddled with."
               
               
               
               
               
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        In her first speech as Prime Minister, Theresa May referred to the "injustice" in the fact that "if you're young, you'll find it harder than ever before to own your own home".Housing charity Shelter has regularly called for the government to do more to tackle what it calls a "drastic shortage of genuinely affordable homes".A Department for Communities and Local Government spokesman said more than 300,000 people had been helped into home ownership through government-backed schemes since 2010.'More to do'It also said that a 10-year decline in home ownership had stopped."However, we know there is more to do, which is why we have set out the most ambitious vision for housing in a generation, including delivering hundreds of thousands of homes exclusively for first-time buyers," he said.The Local Government Association last week argued that councils should be given the opportunity to restore their "historic role" as house builders.First-time buyer help: What happens elsewhere?In Australia, first time buyers in some States are given a grant of up to $10,000 (£5,091) when purchasing a property
In the US, various States offer incentives.  In Florida, for example, the State government uses tax credits to make mortgages easier to afford once the property is purchased
China has a mandatory deposit of 25% or more, but this is cut to 20% for first-time buyers in large cities such as Beijing
Homes 'too expensive' for Help to Buy Isa schemeWhere can I afford to live?

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TJ

  • Guest
Re: Home ownership falling in major English cities, says think tank
« Reply #1 on: August 03, 2016, 01:32:15 AM »
Yes its a shame that people with money make more money from those without money.

Where rent payers pay the owners morgage [or in some cases "the owner buys the house and rents it out"]

This gives the owner a good income [in which the wealthy "sometimes people who do not even live in the UK" a way of receiving a good return on their investment.

It seems the world is more interested in money than moral values


Offline John

Re: Home ownership falling in major English cities, says think tank
« Reply #2 on: October 18, 2016, 03:49:47 PM »
The world, which is non christian, only has wealth as a means of achieving happiness. It's morality is based on what ever makes it happy.
have a read of this article about evolution and morality:-https://winteryknight.com/2016/10/15/mark-d-linville-does-darwinian-evolution-make-morality-rational-5/

If you want to read more about wealth morality and poverty read :-https://winteryknight.com/2016/10/16/jay-richards-eight-common-myths-about-wealth-poverty-and-the-free-market-4/
https://winteryknight.com/2016/10/15/mark-d-linville-does-darwinian-evolution-make-morality-rational-5/
https://winteryknight.com/2016/10/16/jay-richards-eight-common-myths-about-wealth-poverty-and-the-free-market-4/

Offline Tes Johnson

Re: Home ownership falling in major English cities, says think tank
« Reply #3 on: October 19, 2016, 01:46:32 AM »
Makes you wonder @John - whether younger adults - young families, will ever get onto the housing market, being that housing is so unaffordable.

It is great that a houses increase in value over time - but in the same way - we deny our children.

Offline John

Re: Home ownership falling in major English cities, says think tank
« Reply #4 on: October 19, 2016, 10:26:28 AM »
Unfortunately supply and demand economic rules means the less there is, the higher the price is.
The government could try to limit ownership by nonresident buyers, but that will affect investment and will be unpopular with investors.

Offline Israel

Re: Home ownership falling in major English cities, says think tank
« Reply #5 on: October 19, 2016, 05:22:56 PM »
We are still better off than we ever were.

Offline francis drake

Re: Home ownership falling in major English cities, says think tank
« Reply #6 on: October 20, 2016, 08:15:05 PM »
Unfortunately supply and demand economic rules means the less there is, the higher the price is.
The government could try to limit ownership by nonresident buyers, but that will affect investment and will be unpopular with investors.

Alternatively put a halt to mass immigration and send those without proper jobs back home.

No matter what your politics, plain ordinary statistics say that if you massively add to the population as they have, you will reduce availability of houses, jobs, and services.

Mass immigration has been used as a deliberate tool to undermine society and create chaos so that the global elites can carry out their intentions.

Disturb us Lord, when we are too pleased with ourselves. When our dreams have come true because we dreamed too little. When we arrived safely because we sailed too close to the shore. Disturb us Lord, to dare more boldly. To venture on wider seas. Where storms will show your mastery; Where, losing sight of land, we shall find the stars. We ask you to push back the horizons of our hopes; And to push into the future, in strength, courage, hope and love.                     (SIR FRANCIS DRAKE 1577)

Offline John

Re: Home ownership falling in major English cities, says think tank
« Reply #7 on: October 27, 2016, 08:41:27 AM »
Francis,
              The government, of what ever type/shade has consitently failed to track and deport those whos visitor visa have expired. How would you expect the government to identify unemployed migrants etc
 

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