This report explores the potential risks associated with increasing homeownership above the current rate of 70 per cent. It presents the key findings from a literature review and the development of quantitative scenarios.

It considers the implications of these scenarios, discussing how the results relate to existing policy instruments to extend home ownership and examining alternative models to promote ownership and/or housing wealth.

The report presents a risk assessment of the consequences of expanding home ownership to promote housing wealth and social mobility, together with a series of further questions for policy and research.

Expanded home ownership is often seen as a direct mechanism for delivering social mobility via redistributing wealth and widening lifetime opportunity.

The UK government recently reaffirmed its commitment to increase the number of home owners by one million over the next five years. However, the risks this involves to individuals and to society as a whole are not well documented.

This research addresses this issue by examining risks around increasing rates of home ownership; maintaining home ownership; and the pursuit of social mobility through housing policy.

The research was undertaken in three phases.

Firstly, a literature and data review was conducted to examine the evidence on the links between home ownership and social mobility, identify the factors which encourage or discourage would-be home owners and factors which might undermine their ability to sustain ownership.

Secondly, quantitative scenarios were developed to explore the possible profile of new home owners and a range of alternative home ownership models from other countries were reviewed.

Finally, the findings were drawn together into the risk assessment presented in the report.

The main finding of the study is that home ownership may, but does not necessarily, promote social mobility by opening up access to wealth creation.

Moreover, a number of significant risks apply:

Communities and Local Government
Phone: +44 20 7944 4400
Contactus@communities.gov.uk

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01/02/2007

Brook Lyndhurst

research

Urban Policy > Housing > Housing policy

Privately owned housing