Council of Mortgage Lenders head Nigel Terrington used his speech at their recent annual conference to sound a note of caution about politicians meddling in the housing market. He also spoke about its boom and bust tendencies saying that “some of the characteristics of the market have their roots in the way the British have pursued home ownership over the years – with a vigour which has at times bordered on the obsessional.”
Terrington’s vision is for what he calls a “Goldilocks market” – “Where it is neither too hot nor too cold”. A market where borrowers “have rational expectations of what their mortgage will deliver for them – which is a home – and not see housing debt as the long term answer to all their financial needs.”
With the government Help to Buy scheme having the potential to apply more heat to the mix let’s hope that the mains to follow is not Cold Turkey in the form of interest rates rising faster than expected. That would be an altogether unappetising combination.