The Council of Mortgage Lenders (CML) has called on the Government to take a more holistic approach to housing market issues in a research article.
The article, which focuses on how ‘housing careers’ have changed over the past twenty-five years, reveals how housing tenures have become increasingly complex as society changes.
The CML says affordability, the need to be geographically mobile, fluid household structures and inward migration have boosted the demand for private rented accommodation.
Equally, increasing wealth has meant many people are able to afford larger homes, buy second ‘holiday homes’ and to buy properties for let.
The CML says policy responses to issues of affordability have brought about a number of initiatives, such as part or joint ownership schemes.
However, the CML says the Government must develop a holistic approach to deal with increasing interactions across tenures.
The report says: “A good starting point would be to focus on policies delivering an adequate supply of high-quality housing units, assisting the mobility of households within and between tenures and an equality of treatment for those in need regardless of their tenure.”
The CML says lenders have responded well to changes in society through the design of their mortgage products, which gives borrowers a number of coping strategies for meeting planned and unforeseen circumstances.
Lenders have also helped support the Government’s desire for increasing home-ownership, which has seen an additional 1.75m people get on the property ladder in the last ten years, but says plans to increase this by a further 1m are not sustainable or achievable.
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