Home ownership is falling out of favour. Apparently. This is the message of the latest English Housing Survey which states that 68.3 per cent of people now have a place of their own against 70.9 per cent in 2003.

Further examination, however, of these figures indicates that the decline is a by-product of the boom, rather than distaste for owner-occupation. Younger would-be buyers, without the cash to climb on to the ladder, have been compelled to opt for the rental accommodation accumulated by older people who have become landlords thanks to the equity in their family homes.

Yolande Barnes, Savills' head of residential research, highlights the increasing dominance of the older, richer homeowner. The number of properties bought with a mortgage has fallen to 37.3 per cent; an astonishing 45 per cent of owner-occupiers have paid off their loans. This means that, should they choose to borrow to acquire more properties, these fortunate ones will be warmly welcomed by lenders who, as Ms Barnes predicts, will continue to give preferential treatment to this well-endowed clientele.

Her view is confirmed by the disapproval voiced this week by the Prime Minister for 100 per cent loans - not so long ago, a popular twentysomething way on to the ladder. Northern Rock, the state-owned bank that was once the first-time buyer's benefactor, is to start lending again. But the bank is highly unlikely to resume its relationship with the youthful customer, given that its most famous former product, the 125 per cent “Together” loan, has become the emblem of irresponsible early Noughties lending.

The advertising campaign for the Together mortgage depicted the chaotic bedroom of the twentysomething still living with his parents. The Together scheme was promoted as his step towards adult self-sufficiency. But who knows how many Together borrowers have now been repossessed and are back with Mum and Dad, in anything but a together state.

The Rock seems set to concentrate its efforts on the twentysomethings' parents, the group able to exploit lower prices to pursue their yen for second homes and rental properties. This should ensure that there are plenty of flats to let for twentysomethings and thirtysomethings who, despite the return of the Rock, remain Generation Rent.

Time is right for OFT interest

At first, the timing seems curious. Why has the Office of Fair Trading (OFT) chosen now to investigate the buying and selling of homes, examining in particular the cost of estate agency services? And why is everyone suddenly worried that Britain might not have enough homes in future when so many stand empty? But in fact this is the ideal time to examine these problems, so that the solutions can be implemented before the recovery has set in.

The slowdown has caused considerable attrition in the estate agency business. The firms who remain will be more than happy to listen to any recommendations made by the OFT that could enhance the low level of public confidence in their services. For, even when the upturn arrives, the number of transactions is not forecast to multiply. Only the most adept and efficient agents will thrive.

The fuss over the low level of housebuilding - a shortfall of one million by 2010 has been predicted this week - may seem ludicrous, given the quantity of unsold newbuild properties. According to David Pretty, former chief executive of Barratt Developments, there may be only 20,000 such properties nationwide. This figure will be disputed. But, given the pressure being applied to the Government to embark on a massive housebuilding programme, such arguments are secondary to what types of homes are put up - and where. The city centre flats, with their teeny-tiny rooms, stand empty as evidence of what neither buyers nor tenants desire.

This debate should begin now, as there is a mounting eagerness among property professionals to ensure they start manoeuvring before the recovery is established. In its 2009 London Residential Review, Knight Frank suggests land values could reach their floor this year, with “vulture funds and speculative investors already starting to identify and acquire sites, schemes and properties belonging to forced sellers”. Nationwide's latest survey discerns “very early signs that borrowers are becoming more optimistic”. Rather than thinking that discussion of this issue is premature, should we conclude that it is about time?

Water works for some

Memories of childhood adventure are prompting cash buyers to relocate to seaside towns and other picturesque spots in a small but nonetheless significant flight from inner cities. In light of this new longing for the rural and storybook experiences, this week's column picture stars a former 1950s water tower, situated near Knutsford in Cheshire and on sale for £300,000 through Meller Braggins. There is permission to turn the 7,000 sq ft edifice into a seven-storey home. A lift forms part of the plans, but those looking for exercise rather than escapades will be right at home.

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