We are approaching another crossroads for both the housing and mortgage markets, and IMLA has already nailed its colours to the mast in terms of how government policy needs to evolve.
The ultimate aim has to be a move away from electorally driven and short term policies towards a cross-party collective and long term vision for the future. This must take into account the broad needs of a segmented population in a rapidly changing economic environment, and cover all tenures including private and social renting.
As well as tackling the housing supply shortage, we need to work towards a more sustainable mortgage market with an effective balance between consumer choice and protection, which has been in question ever since the financial crisis. Should current trends continue, the proportion of owner-occupiers will fall to 59% under the next government, having been 64% in 2012. This represents an excessive decline, irrespective of the economic benefits and social need for a strong rental sector.
When it comes to specifics, IMLA has proposed five key policy commitments that would change the outlook for the better. These include encouraging lending to first time buyers through a permanent mortgage indemnity guarantee, and new measures to support downsizing by older households. We also need a programme for a planned withdrawal of government measures currently propping up the market; a review of the combined effect of new lending regulations; and a discussion on the role that sub-prime can play in the future marketplace.
Whoever is governing after what will be a fiercely contested election has a huge housing task on their hands, and future generations will be counting on them to step up to the challenge.
Peter Williams is executive director of IMLA
