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A leading think tank has cast doubt on the government’s plans to boost the housing market.

According to Policy Exchange, encouraging greater levels of lending will not solve the key problem of prices being too high.

“The real problem today is not the high mortgage required but the high cost of housing in the first place,” senior research fellow for housing and planning at the organisation Alex Morton suggested.

He added: “The key isn’t demand but supply. We’ve built fewer and fewer homes despite higher immigration and, much more importantly, older people are living for decades in large family homes.”

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December 1, 2011 at 9:00 am | Quick House Sale, Sell House Fast, Sell House Quickly, Sell My House Fast |
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