13:51 PM, 16th November 2016, About 6 years ago 9
Published today, the Redfern Review is supposed to be an independent report, led by Pete Redfern, Chief Executive of Taylor Wimpey, commissioned by Labour Shadow Secretary of State for Housing, John Healey MP.
The review into home ownership reveals that the financial squeeze on young people is at the heart of the decline in the number of home owners and calls for a long term, cross-party approach to housing issues.
The Review indicates the primary causes of the decline in home ownership
The Review’s analysis shows that the primary causes of the 6.2 percentage point fall in home ownership between 2002 and 2014 are as follows:
The Review also analyses the causes of the house price boom of 1996-2007, and the maintenance of prices at historically high levels in the period since the recession of 2008-2010. The main trends are macro-economic, with rising household incomes and employment and falling interest rates being the main drivers.
In common with other studies, we find that the impact of new supply on house prices in the short term is very small. For example, even increasing home production to around 300,000 for one year would reduce prices by only c.0.6%, given recent rates of household formation. New household formation and supply have been broadly in balance over the last 20 years and therefore the significant increases in house prices over that period have not been driven primarily by supply constraints.
We strongly encourage the current and future Governments to look long term at home ownership issues and to adopt a principle-led strategy against which individual, short term actions can be assessed.
In the Reports Conclusions it includes:
Please read the full review HERE so that you can gauge an accurate weighting of the reports assumptions and conclusions for yourself