The Council of Mortgage Lenders reports that home ownership in the UK continues to fall as a result of affordability pressures and a shortage of new homes.
Also, the latest edition of the English Housing Survey – published by the Department for Communities and Local Government (DCLG) – shows the number of owner-occupied homes has dipped from its peak of 14,791,000 in 2005, to 14,621,000 in 2008-09.
The CML says: “For the foreseeable future, the picture of continuing constraint in the flow of housing supply, and indeed housing finance supply, looks difficult to avoid.
“The effect of this is likely to be that 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.”
The CML highlights that today’s first-time buyer requires a deposit of around £34,000 – more than their total gross annual household income.