“The Bank of England may judge the housing market to be our biggest domestic threat. But events this year have shown that so long as the supply shortage persists, it is very tricky to limit mortgage lending to protect financial stability without weighing down on access to homeownership.
“It seems inconceivable that wage growth will reach the heights that house price growth has recorded in the last year, but something has to change beyond the confines of the mortgage market. We need a long term solution for market stability that is focused on building as well as borrowing. Improving housing supply by a substantial margin is the only way to keeping prices and debt levels in check over the long term without furthering the decline of UK owner-occupation or reverting to a more draconian housing taxation regime.
“Limiting mortgage lending in a market where housing supply is restricted will only swing the balance of power further towards wealthy, cash rich buyers. It may make the UK a more financially stable nation, but it has serious implications for social inclusion, inequality and the future of homeownership. Unless this government and the next are prepared to accept the long term consequences, there needs to be a collective focus in 2015 agenda for the new government on tackling the continuing gulf between housing supply and demand.”
For further information please contact:
Andy Lane / William Muir, The Wriglesworth Consultancy
Tel: 0207 427 1422 / 29 / Email: firstname.lastname@example.org
Notes to Editors
The Intermediary Mortgage Lenders Association (IMLA) is the trade association that represents mortgage lenders who lend to UK consumers and businesses via the broker channel. Its membership of 43 banks, building societies and specialist lenders include 18 of the 20 largest UK mortgage lenders (measured by gross lending) and account for about 90% of mortgage lending (91.6% of balances and 92.8% of gross lending).