CML re­search shows 80 per cent of peo­ple as­pire to own a home in 10 years

The Oban Times - - Property -

LAT­EST re­search from the Coun­cil of Mort­gage Lenders’ long- run­ning se­ries on at­ti­tudes to hous­ing ten­ure confirms that home- own­er­ship re­mains firmly in place as the na­tion's over­whelm­ing pref­er­ence and as­pi­ra­tion – and not purely for fi­nan­cial rea­sons. Some 72 per cent of adults want to be home­own­ers in two years, and 80 per cent hope to own in 10 years, broadly in line with the 30year av­er­age sen­ti­ment. But the re­port by CML chief economist Bob Pan­nell, based on a sur­vey un­der­taken on be­half of the CML by YouGov in late June and early July, also re­veals some less pre­dictable find­ings. Th­ese in­clude how peo­ple per­ceive part- own­er­ship, and who they think should be help­ing young peo­ple who face af­ford­abil­ity hur­dles. In par­tic­u­lar, the re­search confirms that par­tial home- own­er­ship (through shared own­er­ship or shared eq­uity) is re­garded as a good idea by around half of all re­spon­dents – around five times the pro­por­tion who see it as a bad idea. More peo­ple see part- own­er­ship as a step­ping stone to full own­er­ship than as a per­ma­nent ten­ure in its own right. This find­ing comes hot on the heels of an­other CML re­search re­port: Shared own­er­ship: ugly

sis­ter or Cin­derella?, which con­sid­ers how the shared own­er­ship mar­ket can de­velop. In ad­di­tion, a ma­jor­ity of peo­ple – re­gard­less of their own cir­cum­stances – feel that it is harder than it has ever been for young peo­ple to buy their own home. If those who be­lieve it is ‘very dif­fi­cult’ are in­cluded, the pro­por­tion rises to 85 per cent. And 75 per cent be­lieve ac­tion is nec­es­sary to help first-time buy­ers. Pre­dom­i­nantly, peo­ple see the gov­ern­ment as hav­ing a re­spon­si­bil­ity, but mort­gage lenders, house builders and lo­cal au­thor­i­ties are also widely re­garded as hav­ing a role. In terms of the spe­cific mea­sures favoured by those ad­vo­cat­ing ac­tion, spe­cial in­cen­tives to save for de­posits were favoured by more than half and topped the list, closely fol­lowed by in­tro­duc­ing sub­si­dies for all first-time buy­ers. Over a third favoured the mea­sures of abol­ish­ing stamp duty, rein­tro­duc­ing mort­gage in­ter­est tax re­lief and re­quir­ing de­vel­op­ers to dis­count prices of some new homes, among oth­ers. In his fore­word to the re­port, CML di­rec­tor gen­eral Paul Smee ob­serves: ‘ Like all good re­search, the find­ings give rise to some search­ing ques­tions for the in­dus­try and gov­ern­ment – not least, how far it is pos­si­ble to bal­ance the ten­sion be­tween as­pi­ra­tion and achiev­abil­ity, which con­tin­ues to be a fea­ture of the UK’s re­la­tion­ship with home­own­er­ship? And should ten­ure neu­tral­ity be the ul­ti­mate pol­icy as­pi­ra­tion? The re­search also found that: Peo­ple see the value of home- own­er­ship as not purely fi­nan­cial. In fact, the two most pop­u­lar rea­sons for valu­ing home- own­er­ship are seen as hav­ing the free­dom to do what you want, and know­ing that once the mort­gage is re­paid, the prop­erty is yours. See­ing the prop­erty as an in­vest­ment or an as­set, or a mort­gage as cheaper than rent­ing, are cited less strongly. Vir­tu­ally no ex­ist­ing home- own­ers wish to have a dif­fer­ent ten­ure in the fu­ture. Pri­vate ten­ants gen­er­ally ap­pear to view their po­si­tion as a tem­po­rary state. Some 56 per cent of pri­vate renters would like to own within the next two years, and 71 per cent as­pire to own within 10 years. Only 26 per cent of ex­ist­ing pri­vate ten­ants would pre­fer to be rent­ing in two years, and 15 per cent in 10 years. Sen­ti­ment is not the same among so­cial ten­ants – 57 per cent of so­cial ten­ants still want to be liv­ing in so­cial hous­ing in two years, and 46 per cent in 10 years. Among those who want to be home- own­ers but are not cur­rently, there is a sub­stan­tial ma­jor­ity who do not feel con­fi­dent that they will achieve that as­pi­ra­tion. Less than a quar­ter of those who are not cur­rently home- own­ers, but want to be in two years, be­lieve it is likely. The dis­par­ity be­tween hope and ex­pec­ta­tion is par­tic­u­larly marked among younger age groups – fewer than half of those aged 18-24 who want to be home- own­ers in 10 years think it likely that they ac­tu­ally will be.

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