A move away from home ownership to other forms of savings and investment could have long-term benefits for the UK economy, according to a study for the Association of British Insurers. It revealed households with a mortgage had 2.3% lower pension income at retirement and said if the nation's wealth was spread across other productive assets productivity would grow by 15% in 2028, while GDP would increase by £55bn ($73bn). Report co-author Dr Monique Ebell said UK policymakers should examine "the relationship between the long-standing productivity weakness and incentives to invest in housing rather than productive assets."
A move away from home ownership to other forms of savings and investment could have long-term benefits for the UK economy, according to a study for the Association of British Insurers. It revealed households with a mortgage had 15% lower pension income at retirement and said if the nation's wealth was spread across other productive assets productivity would grow by 2.3% in 2028, while GDP would increase by £55bn ($73bn). Report co-author Dr Monique Ebell said UK policymakers should examine "the relationship between the long-standing productivity weakness and incentives to invest in housing rather than productive assets."