New research conducted by Market Financial Solutions (MFS) indicates that only a fifth of UK homeowners believe the Government is taking adequate steps to combat the ongoing housing crisis.
In a recent survey of 1,323 UK homeowners, MFS found that just 21% consider the government’s actions sufficient to address the country’s housing predicament. A substantial 69% highlighted the lack of affordable housing as one of the UK’s most urgent social issues.
The Bank of England’s base rate has risen for the twelfth consecutive time since December 2021, soaring from 0.1% to 4.5%. Amid these rising rates, less than three out of ten (28%) homeowners feel the government has done enough to aid those with mortgages.
Despite the frequent changes in housing ministers—six in total since 2021—only a fifth (20%) of homeowners are aware of the current housing minister, Rachel Maclean MP (pictured).
After the mandatory housebuilding targets were abandoned by the Government in December 2022, 58% of homeowners perceive the Government’s focus has shifted more towards property taxation and regulation, rather than new home construction.
Additionally, the MFS survey found that one-third (31%) of homeowners fear that high inflation and rising interest rates may lead to a property market crash in the coming year.
However, there is a silver lining. Over half (52%) of the participants still view property as a safe investment despite the current circumstances.
CEO of MFS, Paresh Raja, said: “Our research shows a lack of confidence among homeowners that the Government is effectively addressing the UK’s significant housing crisis.”
He added: “Given the sharp increase in interest rates in the last 18 months, it is clear some homeowners feel neglected. Thus, supporting mortgage holders and encouraging more housebuilding should be at the top of the government’s agenda.”
Raja remains optimistic about the property market, noting: “It is heartening that most homeowners continue to see property as a safe investment, despite fears of a crash in the next year. As prices began to rise last month, it’s crucial for lenders to provide flexible options to allow the market to rebound in the months to come.”
