A report from the Department for Communities and Local Government (DCLG) showed increasing home ownership to 75 per cent of the population – a long-term goal of the government – would require more ‘financially marginal and vulnerable households’ to be drawn into ownership.
Catch up on the industry buzz
The CML questioned this increased risk, and asked how well placed existing safety nets were for coping with households that get into difficulty.
The report found maintaining homeownership at 71 per cent of the population would require the creation of 680,000 new owner occupiers between 2005-2010. Achieving a million new owners would see the annual growth of ownership rise from 140,000 to 200,000.
Bernard Clarke, head of communications at the CML, said: “Support has not adjusted adequately to labour market changes that now expose many more people to financial uncertainty. We have been pressing this point on the government, arguing that state support for owner occupiers has diminished and should be restored.”
Find the latest industry jobs
Nick Baxter, managing director or Mortgage Promotions, commented: “It’s very difficult to artificially manipulate markets and it sounds like that is what the DCLG wants to do. Part of the problem is that lenders need to think of the bigger picture. They have responsibilities to many bodies, which would be reluctant to see lenders lessen their standards.”
