Figures showed that there were 14.62 million owner occupied homes in 2006 – 25,000 fewer than the previous year.
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The drop reflected fewer people buying a home with a loan, with 8.2 million mortgage holders in the UK. House prices increased at a level of around 11 per cent a year since 1997, above the standard earning level, the DCLG reported.
David Stubbs, economist at the Royal Institute of Chartered Surveyors, said: “The key issue behind this is affordability. First-time buyers (FTBs) are finding it harder to get on to the property ladder. The problem has worsened hugely in the last decade.
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“Without help from family, new buyers are struggling and it pushes them towards the rental sector. The problem is heightened by the fact that a strong buy-to-let sector is competing with FTBs for property.”
Andy Pratt, chief operations officer at Alexander Hall, said: “This situation doesn’t just cover FTBs, as second-time buyers, such as divorcees and new families are also affected.
“At the moment, buy-to-let is the best proposition with high levels of immigration and FTBs who are unable to get on to the housing ladder. The slower the government builds the houses, the higher the demand gets.”
