The NYT ran an article noting that homeownership rates in the UK are dropping which it attributed to the fact that, "disposable income has shrunk and loan requirements have toughened."

However somewhat later in the article it notes that:

"One reason homeownership remains attractive in Britain is because property values dropped less drastically than in the United States, in part because of a shortage in housing. Prices in some large cities, including London, have even increased recently."

If there really is a shortage of housing, then the tighter loan requirements, which are a main focus of the article, have nothing to do with the declining rates of homeownership. If loan requirements had remained lax, and nothing had changed to the supply of housing, then it would simply mean that prices would rise further and more people would be priced out of the market due to high house prices rather than tough loan conditions.

The ability of people in the UK to be homeowners is limited by the supply of housing. If there is really inadequate supply, as this article contends, then the terms of mortgage loans and even levels of disposable income will not affect homeownership rates.