Mortgage rules are very unfair to young people
Nobody wants a return to the property price spiral of a decade ago. We have bitter experience of how that one ended. But our current mortgage rules leave young people paying very high rents and unable to save for unrealistic deposits.
Our report today shows that many young people are left facing a lifetime of renting - unless they are lucky enough to have well-off parents who can stump up the deposit. Apart from the profound injustice involved for a rising generation, there are societal implications for our future.
A big part of our social cohesion has been based on people having a stake in things by "owning their own walls". It has meant people took pride in their homes and, by extension, wanted to contribute to their community. But we have seen home ownership ratios decline due to the recession and now, ironically, that trend may continue due to undue Central Bank prudence associated with economic recovery.