THIS country seems to be obsessed with home ownership, unlike some of its European counterparts where renting is the norm.

Home ownership in England will slump to just 63.8% over the next decade - the lowest level since the mid 1980s – as an entire generation is effectively locked out of the housing market, according to a new study.

Huge deposits, combined with high house prices and strict lending criteria, have sent home ownership into decline in recent years and the downward trend will continue for the foreseeable future, the National Housing Federation’s independently-commissioned forecasts predict.

It said in England that the proportion of people living in owner occupied homes will fall from a peak of 72.5% in 2001 to 63.8% in 2021. The North East will be the only English region to see any increase in owner occupier numbers over the next decade, rising marginally from 66.2% to 67.4%.

While increased numbers of new homes are being registered – 36,716 in the second quarter of 2011 compared with 30,771 in the same period last year – it is still at a rate too low to meet housing needs, according to the National House Building Council.

I would argue that this nation’s pre-occupation with people being able to own their own home is too narrow a focus.

To help stimulate the construction industry and also meet people’s housing needs, more houses of all tenures need to be built, from rentals to shared ownership as well as outright sale.

It is also vital that the right type of homes are built to meet the demographics and requirements of people looking for a home – whether owners or tenants.

The trend of building one-bedroomed apartments was vaunted as the way ahead and said to reflect the changes in society such as more couples splitting up.

However, in a substantial proportion of family break-ups there are children involved with the part-time parent needing a home big enough to accommodate the youngsters and likewise single people want a spare bedroom for guests.

The Government, planning authorities, building companies and trade bodies, must take account of the population’s needs when shaping future construction policies.

For more information on Constructing Excellence in the North East, please contact chief executive Catriona Lingwood on 0191-3740233 or catriona@cene.org.uk.

Catriona Lingwood, chief executive of Constructing Excellence in the North East.