The government must make "implicit" moves to increase home ownership, Alan Milburn has warned.

The former health secretary argued that the uneven distribution of assets such as property, pensions and shares is impeding social mobility.

"Children born - as I was - in 1958 were far less dependent on the economic status of their parents than those born in later years," he said during his Deborah Leon memorial lecture at Northumbria University.

"Birth not worth has become more key to life chances. If these trends continue, Britain will be in danger of grinding to a social halt. Responsibility and enterprise will be thwarted."

While he welcomes the introduction of child trust funds for all children, the Darlington MP argues that more targeted action is needed.

"Getting Britain socially moving demands a new front in the battle for equal life chances," he said.

"The most substantial inequalities are not simply between income groups but between those who own shares, pensions and housing and those who rely solely on wages and benefits.

"Owning assets helps create a buffer for people in times of crisis. It encourages people to take more responsibility for themselves.

"There is a proud Labour movement tradition of self-help. It is time to re-invent it for today's world."

Milburn, who resigned from the Cabinet earlier this year to spend more time with his family, recommended consultation with mortgage lenders to create more flexible methods of borrowing.

Banks and building societies should be encouraged to build new homes for sale, he said.

Councils should also use their planning policy to create more affordable housing for sale as well as rent, he argued.

And he calls for an extension of the right-to-buy scheme to those in housing association properties.

"New Labour won through pursuing social justice by unleashing aspiration," the former Cabinet minister said.

"It is tempting in times of political uncertainty to retreat into old certainties. We will only go on winning if we continue to be the party of aspiration.

"With a new Conservative leadership pointing with its head towards the centre but with its heart to the right, for Labour to withdraw to old left positions would be fatal.

"We must instead force our opponents where they want to be in their hearts - on the right - by taking the radical centre ground.

"That means developing new policies to reward aspiration, enhance choice and empower communities and families alike."