Number of UK homeowners set to decline, warns CML

Posted: 04 Mar 2010 10:53:13 GMT

The number of people who own their home in the UK is set to continue on a downward spiral over the coming years, the Council of Mortgage Lenders (CML) has warned.

According to the body, the future housing market will see fewer homeowners and a higher proportion of people living in privately rented accommodation.

The expense of owning a home, coupled with a "chronic lack of supply" in all areas of the housing sector, are predicted to be major contributing factors to this new trend.

First-time buyers will continue to find it particularly difficult to purchase a home - the current deposit that is required to secure a reasonable mortgage stands at £34,000, meaning that the number of 25 to 34-year-olds who are able to buy a home is around half the level that it was ten years ago.

The CML said: "First-time buyers will continue to face significant deposit challenges to enter the market and that the trend of falling home-ownership that had already begun before the credit crunch will continue."

Alan Ward, chairman of the Residential Landlords Association, recently advised that the recession has meant that many would-be first-time buyers are being forced to rent for longer than they would like.

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