Capital 'sees biggest fall in owner-occupiers'

High house prices have resulted in a huge drop in the number of people who own and live in a home in the capital.

Recent figures from the Halifax show that London saw the biggest fall in owner-occupation in recent years.

Research by the mortgage lender shows that between 2001 and 2006, the number of people who owned and lived in a house or flat in the capital fell by 6.3 per cent.

The London figures reflect those of the rest of England, where people are continuing to struggle to afford to buy and instead opting to rent property.

Speaking to the BBC, Halifax's chief economist Martin Ellis said: "The fall in the total number of owner-occupied households in England in 2007 largely reflects the increasing affordability difficulties faced by many potential purchasers as a result of the rapid rise in recent years."

He added: "The figures for owner-occupancy clearly demonstrate that these affordability issues are most pronounced among younger people and in southern parts of England."

Meanwhile, London's landlords are said to be profiting from the lack of affordability sweeping the country, with Sainsbury's Home Insurance reporting that the combined value of their investment is more than £24 billion.

Published 13th February, 2008

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