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Housing ownership to fall to lowest level since mid-1980s

01/09/2011
Housing ownership to fall to lowest level since mid-1980s

England's housing associations warned today that the housing market is heading for an unprecedented crisis as it forecast steep rises in the private rental sector and a house price boom.

The National Housing Federation blamed the bleak outlook on an under-supply of homes.

This will see the number of people who own their own homes in England slump to its lowest level since the mid-1980s,

In England, the proportion of people living in owner occupied homes will fall from a peak of 72.5% in 2001 to 63.8% in 2021, the Federation forecast.

Federation chief executive David Orr said: "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.

"Home ownership is increasingly becoming the preserve of the wealthy and, in parts of the country like London, the very wealthy.

Housing minister Grant Shapps hit back at the report and said the Government is pulling out all the stops to tackle housing crisis.

He said: "Were releasing enough Government land to build Leicester twice over across the country.

"The new homes bonus is a multi-million billion pound incentive to communities to build programmes.

"And we are hugely reforming the planning systems, which is massively complex and very slow, and we're taking thousands of pages of planning guidance and law and boiling it down to about 60-pages in a reform that even the National Housing Federation approves."

Shapps said that the Halifax's latest report last week showed house price affordability was at its best level for 12 years and low interest rates would help the housing market in the long term."