Mortgage indebtedness in England: An 'epidemiology'

Abstract

This paper investigates the social distribution of mortgage arrears in England using the 1993-94 Survey of English Housing. It models the odds of households being in mortgage arrears in relation to a range of socio-economic variables. If concludes that the relatively high rate of mortgage indebtedness of recent years is likely to continue for as long as there is such a fundamental disjuncture between current labour market, housing market and social security policy. Many of the features most closely associated with the flexibilisation of the labour market are the very factors which lend to mortgage indebtedness. At the same time levels of social security support for mortgagors experiencing the periodic downside of the flexible economy are inadequate and likely to become even more so. Until such a time as a radical reconnection of these three policy spheres occurs the threat of further 'epidemics' of mortgage indebtedness is likely.