Greater Manchester has seen the sharpest fall in home ownership of any major city area in the last decade, new research reveals.
The Resolution Foundation reports that in 2003 72% of households living in Greater Manchester were home owners. This figure has since plummeted to 58%.
The north western city has also seen the proportion of households renting privately more than treble over the same period – from 6% to 20%.
The fall in home ownership and a corresponding rise in private renting in Greater Manchester reflects a wider trend across the country.
The Resolution Foundation notes that Outer London, South and West Yorkshire, and the West Midlands Metropolitan Area have also experienced double digit falls in home ownership since the early 2000s.
They also found the proportion of private renters across England increased from 11% in 2003 to 19% in 2015.
‘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 Resolution Foundation analyst, Stephen Clarke.
‘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.’
‘These drops are more than a simple source of frustration for the millions of people who aspire to own their home. The shift to renting privately can reduce current living standards and future wealth, with implications for individuals and the state,’ he added.
Households in the private rented sector spend a far higher share of their income on housing than those who own with a mortgage (30% compared to 23%). They also have to face the insecurity associated with renting.
Fewer than one in ten private renters, according to the Foundation’s findings, did not expect to purchase a house because they liked it where they were, and just 1% preferred the flexibility of renting to home ownership.
‘We cannot allow other cities to edge towards the kind of housing crisis that London has been saddled with,’ Mr Clarke said.
‘It’s encouraging that the new prime minister has talked about tackling the housing deficit. She may find that making good on this promise could secure as important a legacy as negotiating a successful exit from the European Union.’
The Resolution Foundation’s research follows last month’s call from the Local Government Association (LGA) for a ‘renaissance’ in house building.
The LGA urged the Government to introduce a series of new measures to get councils building again, including allowing them to keep 100% of receipts from any homes sold through the Right to Buy scheme.
‘As our analysis shows, millions of people studying hard and succeeding in work will also no longer be able to find an affordable and decent place to live,’ said LGA housing spokesman, Cllr Peter Box.
‘Bold new action is needed to solve our housing crisis following the vote to leave the European Union. A renaissance in house building by councils must be at the heart of this.’
