According to a recent survey conducted by Market Financial Solutions (MFS), only 21% of UK homeowners believe that the government is adequately addressing the housing crisis. The study, which involved 1,323 homeowners, highlights a lack of confidence in the government’s actions, with a staggering 69% considering the scarcity of affordable housing as one of the most urgent social problems in the country.
Paresh Raja, the Chief Executive at Market Financial Solutions, expressed concern over the government’s handling of the housing crisis, stating, “Our research shows that there is a lack of confidence among homeowners and homebuyers that the government is addressing it. This is likely, in part, a reflection of the turbulence Westminster has experienced in the last year, with changes of leadership bringing about new priorities.”
Over the past year, the Bank of England has raised the base interest rate 12 times, soaring from 0.1% to 4.5%. However, a mere 28% of homeowners believe that the government has done enough to support individuals with mortgages during this period of rising rates.
Additionally, the survey revealed that homeowners lack awareness of the current housing minister, with only 20% correctly naming the incumbent. Furthermore, following the government’s abandonment of mandatory housebuilding targets in December 2022, 58% of homeowners believe that property taxation and regulation have taken precedence over constructing new homes.
Raja emphasized the need for government attention to homeowners and the housing crisis in light of the rapid increase in interest rates. He stated, “With interest rates rising rapidly in the last 18 months, the study clearly highlights that some homeowners feel left behind, so supporting those with mortgages and encouraging more housebuilding ought to be at the top of the government’s to-do list.”
MFS’s research also uncovered concerns among homeowners regarding high inflation and escalating interest rates, with 31% anticipating a property market crash within the next 12 months. Despite this, a majority of 52% still perceive property as a secure investment in the current economic climate.
Raja acknowledged the fears of a potential crash but also noted the continued confidence in the property market, saying, “It is encouraging that, despite some fears of a crash in the next 12 months, most homeowners continue to see the property market as a safe investment in the current climate. Indeed, as prices began to rise again last month, it is important for lenders to provide buyers with flexible products to enable the market to continue its resurgence in the months to come.”