The current volatility in house prices hurts the whole economy – we need solutions that will provide stability and affordability for home owners

Abstract

Britain’s model of home ownership is under severe strain. House price volatility has become the constant – and delinquent - companion of the UK economy. It has affected economic policy at the highest level, most notably the decision not to join the Euro in 2003. With four boom and bust cycles since 1970 we have yet to learn the lessons from past recessions so that we can change the record and inject more stability into the UK housing system, argues Professor Mark Stephens, as The Joseph Rowntree Foundation Housing Market Taskforce set out to change the record and look for solutions that could smooth the housing market cycl