Lender group calls for long-term housing minister amidst market instability

A mortgage lender group is calling for a long-term housing minister to help provide stability to the housing market.

The OSB group says affordability will remain a challenge for many prospective homes.

In a new report, the lender group also reveals landlords plan to grow their portfolios.

Merry-go-round of housing ministers

Adrian Moloney, group intermediary director of the OSB Group, says the merry-go-round of housing ministers has not helped the housing market.

He said: “Right now, the headlines suggest the next general election will take place in October and, as always, there is much speculation about what either government would do for the housing sector.

“It’s difficult to forget that in the last 13 years, there have been no less than 16 housing ministers, seven of those in the last two years alone.

“With this level of churn, it is no wonder why the housing crisis has not been solved.

“What the nation needs now as we approach the prime time for property purchases is a housing minister to stay in the long term, to help provide direction and stability for the property market.”

Growing demand for HMOs

According to government data, the private rented sector includes roughly 4.6 million households which makes up nearly one fifth (19%) of households in England.

According to the OSB Group, as house prices begin to level out, and mortgage rates come down, buy-to-let yields should continue to rise.

Research by the mortgage lender reveals seven in ten (69%) landlords have already or are planning to increase the size of their property portfolio, which should help fuel supply.

The OSB group also reveals a growing demand for houses in multiple occupation (HMOs) from renters.

Shift change is needed

The report also addresses the shifting landscape of housing preferences and the emergence of the “Generation Rent” phenomenon.

Mr Moloney said: “The term ‘Generation Rent’ – young professionals renting for longer due to lifestyle choices – has gained notoriety in recent years.

“The reality is that more people, of all ages, backgrounds and regions will need to rent for longer, and in some cases indefinitely but that doesn’t mean it should be viewed negatively.

“A shift change is needed to understand that renting can be a positive option and suits particular requirements.

“However, we also recognise that home ownership remains a popular aspiration for many Brits, but unless we see a significant increase in the levels of investment in affordable housing, many people will continue to be priced out of the market.”

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