CML call for holistic policies

The council of mortgage lenders are calling on the Government to take a more "holistic" approach to housing policy as homeownership behaviour has changed dramatically in modern times.

The CML, which is made up of banks, building societies and other lenders, point out that people's property ownership careers are significantly more varied than they used to be.

Traditionally homeownership was straightforward. Constantly rising incomes since the War and reliable career progression led to a predictable pattern. People moved up the ladder and generally tended to downsize when they retired. Various social and economic changes have made the system a little more complicated nowadays.

The findings of a report by CML economist Paul Amter show some of the key changes in people’s property careers over the last 20 years:

  • One fifth of first time buyers, that is people who are not currently homeowners, are in fact returning to the market having previously owned a property.
  • Nearly 15 percent of people that are returning to the private rental sector were previously homeowners, a percentage that shows people are travelling both ways on the property ladder.
  • Around ten percent of people own a property that is not their current home and this is sometimes instead of rather than in addition to their current homes. This can occur when a person buys a property in a cheap area, away from their work and lets it out to get a foot on the property ladder.
  • The number of second homes has risen by 30 percent in the past decade.
  •  "Living apart together" is on the increase with 900,000 men and 1.2 million women in this form of habitation. In order to maintain security both partners maintain a separate property.

 

There are many factors that have contributed to these changes, not least career uncertainty. People do not stay in jobs for life and as such have to remain mobile and adaptable. Economic growth and employee salaries have not kept in line with property inflation meaning that fewer can risk getting on to the market and many have to leave as circumstances change.

Other factors include:

  • Changing demographics brought on by increased immigration.
  • People are choosing to remain single for longer.
  • There is a rising student population, with more people returning to education at some point during their careers.

 

Paul Samter, CML economist, concludes in the article: "Given the considerable complexities of modern life and the increasing interactions across the tenures, perhaps it is time for the government to develop a more holistic approach to housing market issues. A good starting point would be to focus on policies delivering an adequate supply of high-quality housing, assisting the mobility of households within and between tenures and an equality of treatment for those in need regardless of their tenure."

Be the first to comment

Nobody has made any comments on this entry - be the first to have your say below.




More Recent News

  • New Year same trouble Alex Coxall 6 Jan. 2009 The 2009 RICS forecast predicts a further fall this year of 10% in average property price, which would mean a peak to trough drop of 25%. The predictions are based on the continued reluctance of lenders to lend and the increasingly glum economic climate we are facing. Read more
  • Darling considers credit guarantees Bloomberg.com 11 Dec. 2008 Dec. 10 (Bloomberg) -- U.K. Chancellor of the Exchequer Alistair Darling is considering credit guarantees for households and companies to spur bank lending, a person familiar with the plan said. Read more
  • Rics figures show November fall Alex Coxall 11 Dec. 2008 Figures released by the Royal Institution of Chartered Surveyors (Rics) show that property prices have continued to decline during November. Read more
  • Price drop slows slightly Alex Coxall 27 Nov. 2008 The rate of house price drop fell in November according to figures released by Nationwide today. The market however remains nearly 14 % lower than it was a year ago, as buyers remain worried and lending remains curbed. Read more
  • Housing market Downfall 27 Nov. 2008 Famous scene from an award winning film reworked. Read more
More news