Greg Hurst, Political Correspondent
Download 'Too Hot', an exclusive Specials track from iTunes
The number of people who own their homes fell last year for the first time since the 1950s. About 12 per cent of households, or 2.4 million, now rent privately, a figure that has been rising steadily for six years.
The number of owner-occupied dwellings in England slipped by 25,000 to just over 14.6 million last year. The number of households with mortgages fell by 96,000 to 8.2 million. The number of homes owned outright continued to rise, by 71,000 to almost 6.4 million.
The figures break the pattern of steadily rising levels of home ownership. In 1953, the proportion of owner-occupiers in England was 32 per cent. This rose to 43 per cent in 1961, 51 per cent in 1971 and peaked at 75 per cent in 1981, or 9.9 million households. Although the proportion of homeowners fell, the actual numbers continued to rise until 2005.
Home ownership remains high, at 70 per cent of households in England, but ministers will be hoping that the fall does not mark the start of a trend prompted by high prices, the impact of several interest rate rises since August 2005 and costs such as stamp duty.
Average house prices rose to £201,090 earlier this year. According to the latest survey from Hometrack, the housing information business, house prices rose by 0.8 per cent in March, largely due to rising prices in London.
Labour’s election manifesto in 2005 set a target to increase home ownership by 1 million by the next general election.
The figures, from the Department for Communities and Local Government, were cited by the Conservatives as evidence of the failure of government policies to help those on modest incomes on to the property ladder.
Michael Gove, the Shadow Housing Minister, said that the real picture was likely to be worse because government figures measure households. The rising level of single-person households is likely to mean that the actual numbers owning homes will have fallen even more.
“It is unprecedented to see home ownership decline in Britain and a sad commentary on Labour’s failure to spread prosperity across society,” Mr Gove said. “It is particularly unfortunate that Gordon Brown’s Budget made home ownership more difficult and did nothing to help first-time buyers.”
The department played down the significance of the fall, saying that its survey of English housing relied on sample figures, and statistics for 2006 did not show a significant change from the previous year.
Yvette Cooper, the Housing Minister, said: “We have already seen 1.8 millon more homeowners since 1997. But unless we build more homes we will see continued rises in house prices and growing pressures on first-time buyers.
“That is why the continued opposition to new homes from Tory MPs and councils across the country is so shocking. This hostility to new homes is letting down the next generation of homebuyers.”
Annual housebuilding was up from 130,000 homes in 2002 to almost 180,000 and the Government had helped nearly 80,000 into home ownership since 1997, the DCLG said.

Sam Coates's blog about Westminster, politics and spin
Win a luxury weekend to Newcastle and its neighbour Gateshead, find out more here
Risk, resilience and embracing new technology
Industry sectors news at a glance. Interactive heatmap, video and podcast
Discover the power of collective thinking. Submit a solution and be in with a chance to win a Media Hub Home Entertainment System
The inside track on current trends in the charity, not for profit and social enterprise sectors
Everything the Business Traveller needs to know to make a better trip
Make the most of the summer and enter our fabulous photographic competition, you could win a £5000 holiday
Corsica is an island of beauty and contrast, an ideal holiday destination
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
The clever way to lease a new car is with Car leasing made simple™
2009
per month on 36-month
Personal Contract Hire (PCH)
2008
42850
Car Insurance
£24,250 - £30,346
MI5
London
£60,000
The Environment Agency
Bristol
Up to £90K
Boots
Midlands
OTE £85k
Credit Protection Association
Nationwide Opportunities
Completely London
Luxury Condo's in Manhattan with NYC views
The best new homes in Wimbledon?
Nationwide
Fabulous Cruise And Cruise & Stay Offers Including Virgin Atlantic Flights Prices Start From Only £699pp!
Last Minute Cruise And Cruise & Stay Offers. Med From £499pp, Caribbean From £699pp!
5 star quality at a 3 star price.
8 fabulous Canadian cities ...you won’t find cheaper
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Property Finder | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
To the buy to let landlords who think there is nothing wrong with making a profit from other peoples' hard-earned income while they sit on their backsides- why should graduates in professional jobs pay for your houses for you? I can't afford to buy and I really resent paying some chav's mortgage for them! What are the real options for key workers in this climate?
melissa, aberdeen,
I am a landlord, and my rents have not increased for over 5 years. I provide good housing that is often distroyed and ruined by careless individuals. While I make living, I am not running a new car or living in the hight life, and like everything the beurcracy and tax which I pay and am liable for is horrendous, perhaps people should stop blaming small landlords for the increase in house prices and blame banks who lend the money. I pay higher rates of interest for the money I borrow and 40% tax when I sell. The real villan in all of this are the large companies and banks who are now set to start buying up houses on mass, which will be worse than the small landlords. At least the small landlords are often local people who employ local people. Also, buy to let has always existed, but it was a case that people did not decalre it whereas these landlords are clearly identified today.
Gallius Dean, Walthamstow, London
Perhaps figures like this will persuade politicians that something needs to be done to decrease the price of housing. House price rises are always celebrated in the press as they increase the wealth of most people on paper. However it does so at the expense of social mobility. No point in your house rising in value by £50k if the one you would like to buy has risen by £75k. No point trying to buy a house in many parts of the country if you earn average wages. It is the young that suffer. The problem is not unlike a new form of slavery. Those of us in our 20s work hard in order to hand over something like 50% of our take home pay to middle-aged landlords many of whom no longer need to work once they've built up a mid-size portfolio.
As mentioned by Denize in Preston it is the buy-to-let landlords that are the cancer at the heart of our society. I'm sure it is not just southerners at fault though. To me and many young people housing is the most important issue in England.
Steve, London, England
Presumably, Gordon is looking to tax tennants to discourage this trend....
mike, northampton, uk
The rental market is anything but healthy. It is dominated by greedy private landlords that push rents up as high as possible. Someone who rents in England will find that their rent goes up year on year (and by more than the inflation figures on which pay rises are based). A home-owner is likely to see their mortgage payments decrease as a proportion of their salary year after year until they own their home outright. Renters have little security of tenure. Landlords in this country are mostly small scale and they think only of their own profit not the wellbeing of their tenants. That is why people want to own their own homes. People are not choosing to rent, they just can't afford to buy. I would love to see the government go after private landlords for every penny they can.
Land is the most scarce and valuable resource in England. The high price of land finds its way into prices for everything we buy not just housing. It is a prime cause of rip-off Britain.
Steve, London, England
The 1.8m extra owners are mainly because they bought their council houses, that policy did not under Tories and not under Labour increase the total housing numbers, its more difficult for those on the housing lists of the RSLs to be allocated a home from the diminishing numbers. Yvette parrots the mantra that we need more homes and while no one is better placed to see that we do, she does not permit Local Authorities to do so - she is the real obstacle to more homes and the policy of leaving the total numbers to entrepreneurs to supply thro the Market has been a failure , that is the fault of the Government. We need to replace old and decaying houses, provide for extra households being formed, house the young with children and stop the B and B horror for theIR sake.. Sky rocketting costs of a new house mocks the minimum wage as even those on the average wage cannot afford to buy nor can first time buyers in 90% of Towns, millions new homes are needed.
Leslie Turner, maidstone, kent
Failing ownership is a bad thing because it means that the property owners are the ones holding the wealth. Those who rent never have any benefit. Good luck to the bloke who doesn't see the problem.
judy, Liverpool, england
@ Bob from Tunbridge Wells.
If the number of properties to let increases, this means that the landlord who owns the property is actually making all the profit and the unfortunate renter makes no profit from it at all.
Considering we have one of the lowest unemployment levels in Europe, being flexible doesn't appear to have any real benfits apart from flexibility itself.
Stuart, Wrexham,
The government need to put the brakes on buy to let. Properties are snapped up to be rented out, by people who have already bought one home and this is what is inflating property prices, especially of starter homes.
This cannot be changed without legislation as market forces on these properties are dictated by the availability of mortgages to buy to let investors, not by the ability of first time buyers to afford such properties.
The overall shortage of property is vastly overplayed by comparison, yet noone seems to want to confront the buy to let nightmare that has taken over house prices in this country.
Claire James, Ruislip, UK
Why is falling ownership a bad thing ?
A healthy rent market, is more realistic prospect, than ever increasing demand for house buys, which inevitably result in excessive prices, and the cost ofmoving impair job mobility. The Europans take a more realistic apprach to home ownership.
Bob, Tunbridg Wells, Kent
Britains have finally seen the light. It is cheaper to rent than to pay three times the asking price over 25 or more years for a house you will never own. An English mans home is not a castle but a stone around his neck.
Jim, York,
I'm not surprised,
the majority if new homes built in my area, (North West) including a complete new village, have all been bought by wealthy Southerners on buy to let schemes. We call them the toilet estates for the sheer number of to-let signs littered along the roadside.
Whenever a new housing development is advertised the houses are snapped up by the southerners as an investment. They don't even sign contracts, just pay a deposit, and by the time the house is built the price has risen. They then put the house up for sale to another group of buyers, and out come the to -let signs. This is repeated time after time.
It's a standing joke here, but not for the poor couples looking to buy their first house, as all it does is puts the price of a buying house beyond their reach.
Denize, Preston, England
This is a sad situation. Our youngest son lives in a two room flat in Putney with his girlfriend and pays £1300 a month. Between they make about £110k per annum gross but cannot afford a mortgage for a property in Putney with two bedrooms.
Since he moved there three years ago, the price has risen from the high £200k's to over £400k for the same property. No matter how much they save, the houses keep moving away from them.
Graham Probert, Camberley, UK
Try stopping massive immigration Yvette Copper instead of blaming everyone else. Labours horrendous mass immigration policy is destroying this country and its services.
The solution from labour is to charge us more such as road and congestion charges!!!!!
Gary, Oldham,