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.

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