Speaking at the BSA annual conference in Manchester, Robert Parker, head of strategic advisory group at Credit Suisse explained to delegates how consumer psychology continues to change on property.
He said: “We’re moving back to a behavioural situation where we regard our houses as somewhere to live rather than as an ATM.”
John Cridland, director general of CBI added he does not expect to see the industry head into another housing bubble.
“Until wages catch up, the forecast of flat house prices is probably right and things will stay this way as long as there is a shortage of property.”
However, Peter Griffiths, chief executive of Principality Building Society disagreed insisting that the bigger issue is the availability of credit, rather than concerns over supply and demand.
“There are a couple of issues here, first I think that as credit conditions change over the next decade more people will try and get into the housing market.
“I think the bigger issue here is whether building societies should look to put ‘building’ back into building societies. For us, conceptually, this is about is tapping into the support of the pension funds to build a long-term institutional intermediate investment rendered product, to build houses in the intermediate rented market. I think that’s part of the balance of my demand equation.”
Griffiths also countered that he expects house prices to rise over the course of the decade.