Prop­erty own­ing will fall sharply

Yorkshire Post - Property - - PROPERTY -

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.”

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