THE housing market is becoming “the preserve of the wealthy”, according to a new report that puts Bournemouth at the forefront of a national trend.

The need for huge deposits, combined with high house prices and strict lending criteria, has sent home ownership into decline, according to the National Housing Federation.

Home ownership in England will fall to 63.8 per cent by 2021, down from a peak of 72.5 per cent in 2001, it was predicted.

Chief executive David Orr said: “With rents also rising rapidly and social housing waiting lists at a record high, it’s time to face up to the fact that we have a totally dysfunctional housing market.”

The trend towards rentals – and higher rent prices – indicates the national market is moving towards the situation in Bournemouth.

The town was ahead of the curve by having only 69.5 per cent owner occupied houses in 2001.

The Housing Federation, which represents social landlords, has blamed the decline in a shortage of new housing.

However Rex Craven, a director of Bournemouth-based Goadsby Residential, said: “I think the problem is that the lending sources are requiring such high deposits – roughly 15 to 20 per cent. “The only way it can be changed is if the government pressurise the lending sources.”

In Bournemouth, the average house price is already 10 times the median wage. In Christchurch, the price is 15.4 times the median wage.

Nationally, rents are forecast to increase by 19.8 per cent over the next five years fuelled by high demand and a shortage of properties.

A spokesperson for Bournemouth Churches Housing Association said: “The trends forecasted are worrying.

“More people may be in a position where they can’t afford their rent or home repayments and are forced on to the streets.

“Our St Paul’s night shelter is already full each night.”

The National Housing Federation is using its report to call for a new house building programme.

It says new builds are currently at a 90-year low.

Bournemouth Council recently announced plans to build 1,000 properties over 30 years.

Council leader Peter Charon said: “Nationally, there is not enough housing.

“Successive governments recognise that, but it’s very much a question of resources.

“We have then got to balance that with the view of local people because there are planning requirements.

“Here in Bournemouth we have, for example, the sea to the south, the New Forest to the east, and the greenbelt to the north.

“On the other hand, if you look to Europe people are very used to long term rentals.

“The question is, is that a good or a bad thing?

“Young people want to get on the property ladder but on the other hand they like the idea of being flexible and going where the jobs are.”