“The falling rate of house price increases at the end of 2014 might suggest we are en route to greater market stability – but this should not disguise the need for ground-breaking action on housing policy in the upcoming election. Declining affordability has tempered demand and the housing market in its present state is still a long way from supporting the nation’s home-owning ambitions.
“Housing policy is in need of fundamental reform rather than short term voter appeasement that has brought a host of temporary measures and tinkering at the edges without a long term plan. Successive governments have failed to address changing housing needs and left us on a downwards trajectory that will see owner-occupation drop to 59% by 2020 if current trends continue.*
“The government-elect has to address a managed withdrawal of temporary support measures, a long term mortgage indemnity guarantee to permanently revive first time buyer lending, and a review of lending into retirement and the impact of regulatory reforms that have left us with a far more conservative mortgage market. Equally, we cannot achieve long term stability without fixing the housing supply shortage, which remains the tumour behind many issues in the market.”
*“IMLA, UK Election 2015 — Criteria for housing and mortgage policy pledges
For further information please contact:
Andy Lane / Will Muir, The Wriglesworth Consultancy
Tel: 0207 427 1422 / 29 / Email: imla@wriglesworth.com
Notes to Editors
About IMLA
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 52 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).
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