I do not agree that young people have lost the aspiration to own a home but there is a gap between the aspiration to own and the reality of being able to.
The problem now is that if they can afford the mortgage, most do not have the deposit and the Bank of Mum & Dad seems to be in a bit of a cashflow crisis itself.
Forced to live at home to save or rent and not be able to save, most young people are between a rock and a hard place. The only good thing is that home prices are likely to remain subdued for the next few years.
For those who have no choice but to rent privately, the big problem is a lack of security of tenure. There is always a chance you will have to move on if the landlord wants to sell the property or you cannot agree a new contract. Such insecurity is not a basis for a long-term relationship or bringing up a family.
For many reasons, I believe shared equity/ownership schemes provide a point where a home may be affordable with a smaller deposit, leading to full ownership is possible and there is provision for security of tenure in the same way as if you were buying the full equity of a home at the outset.
The affordable homes issue has been around for years and the previous Government did have shared equity schemes but they were complex, limited and severely underfunded.
With fewer lenders in the mortgage market and even fewer prepared to lend for shared equity/ownership and a lack of Government funding, the problem is to achieve what would be a solution for many young people, a programme of building a substantial amount of new affordable shared equity/ownership properties, but where is the funding going to come from?
Funding for mortgages could get worse before it gets better.
This brings me back to the question, how do you fund new affordable homes for first-time buyers through shared equity/ownership?
Assuming that somehow the Bank of England and the banks square the circle on refinancing, then maybe it calls for some imaginative thinking to stimulate the housing market to provide new homes, particularly for young people in shared equity/ownership.
What about a revised HomeBuy Direct scheme where you can have a minimum of a 50 per cent share or more, the remaining share financed through a housing association, which gets its funding by issuing medium and longdated bonds to the domestic institutional market with a Government-backed guarantee scheme. Or am I just dreaming?
Danny Lovey is principal at The Mortgage Practitioner