IMPACT OF INCOME DISPARITY ON HOMEOWNERSHIP RATES IN MAJOR UK URBAN AREAS OVER THE PAST DECADE

This study aims to explore the relationship between income disparity and declining homeownership rates in major UK urban areas for the last 10 years (2014-2024). This study investigates how income disparity, housing affordability, and other socio-economic factors shape trends in homeownership using secondary data analysis. The findings indicate that income disparity, as measured by the rising Gini coefficient and a growing affordability gap, is a major barrier to homeownership, especially for lower-income families. Additionally, structural issues such as housing supply shortages, regulatory constraints, and demographic shifts have exacerbated these challenges. While other factors, such as cultural and generational preferences, are taken into account, income disparity is still the primary cause of the crisis. This paper emphasizes the need for policy interventions that address income disparity, improve housing supply, and promote equitable urban development to mitigate the housing affordability crisis in the UK.