Property owning will fall sharply
A MEMBER of the Bank of England’s Monetary Policy Committee has suggested that the housing market will never go back to what it was.
David Miles says home ownership will fall sharply, taking a back seat to renting.
He said the credit crunch has created a new world where there will be a “lower rate of owner occupation and a bigger rental sector”.
He added that renting could be of benefit to the overall UK economy and cautioned against a return to banks offering mortgages to borrowers with small deposits. He says: “I do not believe that the housing market and the mortgage market will get back to where we were in the years leading up to the crisis.”