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Campaign for cheaper mortgages

Date: 26 Jan 05

A campaign has been launched to try and bring soaring house price inflation under control.

House prices have roughly doubled in the last five years, and have accelerated far in excess of wage growth, making homes less affordable for first-time buyers.

The House Price Control campaign intends to write to MPs urging them to use regulation to hold back property prices and tackle issues relating to affordability head-on.

Head of the campaign, Bob Goodall, said: "No one benefits from house price inflation. High house prices are an illusion of wealth that mean higher costs such as insurance."

The group wants to start a debate on the possibilities of regulating the market.

"Regulation is a free tool for the government that costs nothing financially," he added.

Mr Goodall said: "The best way of ratcheting up the standard of living of people in this country is to regulate the biggest cost in their lives: housing."

However, Halifax chief economist Martin Ellis said the campaign was a case of shutting the stable door after the horse had decided to return anyway.

"The market has been slowing for some months," he said.

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