The director general of the Council of Mortgage Lenders (CML), Michael Coogan, has said that "The golden age of home-ownership is over ….. "and then followed it up with a " ……. for now".


Reported in the Telegraph he says that the new more stringent rules covering mortgage lending will cause house prices to fall.

To be fair he calls the 'golden age' the period just before the 2007 / 2007 rampant rise in house prices when, he says, prices and rises were more affordable and stable.

But I don't think it was a golden age, except for the lenders and others such as estate agents pocketing vast amounts of money as prices ramped up even before the 2006 / 2007 period.

But I think (hope) that the golden age for home ownership is to come. That is when putting a roof over your head does not mean paying excessive prices for property as well as supplying the banks with a huge unwarranted ready made income in interest payments to fuel their bonus packages.

The new rules will put a lot more onus on the banks to make sure the mortgages are affordable, but Mr Coogan thinks that lenders will then take no risks and be more willing to walk away from a deal than take it on for fear of a regulatory slap on the wrist.

So it's back to 1950's style responsible lending. With a potential for fewer home-owners and more people living with parents and renting for longer.

Unless of course we can get house building going again. Then there would be more supply to meet affordable demand. House prices would then be kept down. And with proper ongoing lending rules imposed on the banks the prices could be kept down for good. That will be good for home ownership as opposed to profits from short term multi-property ownership or from higher mortgage amounts benefiting lenders.

Some people made enough money during the boom to line their pockets for life at the expense of the rest of us. This should not be allowed to happen again. One sure way of doing this would be the use of Land Value Tax (LVT) to replace as many other taxes as we can.

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