Government warns middle classes about housing pension funds

The UK government has today issued a warning to the middle classes that they should not consider their home as their pension arrangement for the future. Over the last few decades there has been a monumental increase in the cost of property in the UK which has ultimately barred many first time buyers from the market. The UK government is therefore looking to break the cycle of boom and bust and also slow down the boom times for the UK property market so that it keeps more in sync with income levels.

There is no doubt that the difference between income and house prices in the UK has widened over the last few years and more and more people are now forced to lay down larger deposits and indeed take on more risk regarding their mortgage arrangements. The UK government is now adamant that a period of stable house prices, as opposed to buoyant house prices, is required for the future as a means of allowing first-time buyers into the market.

While this sentiment is fairly sensible and fairly forward thinking there is little hope that the UK government or any other government in the future will be able to control house prices to such an extent.