50-year growth in homeownership revealed

Posted: 02 Jul 2007 10:56:35 GMT


            Property News - 50-year growth in homeownership revealed

Levels of homeownership in the UK have nearly doubled in the last 50 years, despite the widening gap between house prices and earnings, new research suggests.

Levels of homeownership in the UK have nearly doubled in the last 50 years, despite the widening gap between house prices and earnings, new research suggests.

According to a study by Halifax, 70 per cent of adults now own their own home, compared with just 38 per cent in 1957.

This is despite huge increases in house prices in recent years, and the growing difference between earnings and housing costs.

The house price to earnings ratio stood at 3.2 in the 50s, the study revealed, compared with 6.1 today.

Interest rates on mortgages were found to be comparable, however, with rates of 5.3 per cent in 1957, compared with 5.5 per cent today.

"Although employment levels in 1957 were high and almost everyone had a job, relatively few people owned their own home," commented Tim Crawford, a Halifax Group economist.

"Over the last 50 years home ownership has nearly doubled and rising house prices have substantially increased the wealth of many home owners, particularly in the past decade."

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