UK and Ireland saw the biggest worldwide decline in home ownership (-11%) over the last 10 years, Swinton Insurance has revealed.
Homeownership in the UK now stands at 65%, an 11% decrease from 2008.
Angela Bowden, home insurance specialist at Swinton Home Insurance, said: “It’s interesting to see that home ownership rates have dropped in developed countries globally.
“Our research shows that there are other factors at play other than just affordability – using the example of Switzerland, where salaries are so high, but the home ownership rate is very low – indicating that the cost of living and even personal preferences can dictate whether people become homeowners or not.”
In the UK, the average monthly salary is £1,825 and the average cost to purchase per square meter is £3,585 which is equivalent to two months’ salary being required to purchase just one square metre.
In comparison, the average price to rent is £877 per month, which is less than half of the average monthly salary. This shows how affordability plays a key factor when it comes to the declining trend of homeownership.