Mortgage hopes boost property interest It comes after government figures showed yesterday that the level of homeownership in England had fallen to 65.3 per cent, its lowest level since 1987. The Post Office study showed one in six (16 per cent) people surveyed said that they have no chance of being able to raise enough cash for a deposit, showing a sharp drop from nearly a quarter (24 per cent) when research took place last year. However, the findings also suggest that the market is likely to be busier in London and the South East, where house prices have already been holding up relatively strongly. Almost half (48 per cent) of Londoners, and 37 per cent of people living in the South East plan to buy a home in the next five years, compared with 26 per cent of people in the North East and 30 per cent in the North West. Just over a quarter (26 per cent) of people surveyed in Scotland, and 25 per cent in Wales, said that they plan to buy a property in the coming years, showing lower proportions than the average across the study. Some 12 per cent of Londoners are not confident that they will ever buy a property, marking the lowest share in the survey. This compares with 23 per cent of people in the North East, 18 per cent in Scotland and 21 per cent in Wales who do not believe that they will ever buy a home. The number of mortgages on the market has increased and lenders have been slashing their rates following the introduction of the Government's Funding for Lending scheme last August, which aims to encourage borrowing by households and firms by giving lenders access to cheap finance. More than 3,000 homes have also been reserved under the Government's NewBuy scheme, which was launched last March and gives buyers with a deposit of just 5 per cent a helping hand to buy a new build property. Recent Bank of England figures have shown steady increases in the number of mortgage approvals to home buyers and the Council of Mortgage Lenders (CML) also recently reported an uplift in lending to first-time buyers. The CML said last month that it feels more positive about the UK housing market and the wider economy than a year ago. John Willcock, head of mortgages at the Post Office, said: "It's really encouraging to see such optimism among potential homebuyers... The changing lending landscape, housing market movement and the availability of more affordable mortgages in early 2013, has perhaps cajoled many into feeling more confident about the future of the housing market, with more people hoping to move, or buy a property for the first time, over the next few years. More than 2,000 people took part in the latest research in January.