Politicians need to devise a housing strategy which acknowledges the current fragmented and regionally disparate housing market, the Council of Mortgage Lenders has demanded in a ‘manifesto’ published today (4 September).
CML’s document says that a long-term objective should be a “sustainable UK housing market which allows people across the country to realise their aspiration of home ownership”. It cites statistics which claim that 79 per cent of British adults want to own a home.
The report continues: “We also need a housing strategy which acknowledges that the current housing market has fragmented into a series of disparate regional (even local) markets in which there are different conditions and challenges.”
Alongside regional variations, there are also different issues affecting buyers across age demographics, according to CML, and which require varying actions from policymakers.
For younger buyers, the main issue is the cost of housing. For this group, the CML wants the government to focus in particular on increasing supply and reforming stamp duty to reduce its burdens, especially due to its cliff-edge nature.
In contrast, for older buyers the CML has stated the government should address “regulatory stumbling blocks that relate to lending in retirement”, and promote better pathways between the mainstream mortgage market, lifetime mortgages, and downsizing.
Finally, for the “in-between” group, the CMLsaid the government should, among other initiatives, watch for “unintended consequences of regulation on credit worthy mortgage holders”, in reference to claims the Mortgage Market Review has disenfranchised existing borrowers.
Paul Smee, director general at the CML said: “There are many things that the mortgage industry can and will do to promote a healthy housing market.
“But it is also crucial to have strategic public policy for housing that is clear, deliverable, and long-term.”
