Is An 'Englishman's Home' His Pension?

| Publication date: 15 Nov 2017 | Theme: Trade, Investment & Productivity, Britain & Finance | NIESR Author(s): Angus Armstrong; Monique Ebell | External Author(s): Warren, J | Report to: Association of British Insurers

This research project considers whether buying houses may reduce long-term savings in the UK economy. This may explain the UK’s relatively low investment rate and weaker productivity performance over the long term. The study has two parts. First, we present new evidence on the saving behaviour of UK households showing that buying a house with a mortgage results in a lower saving rate, which is likely to mean less pension savings. Second, we examine the consequences for the UK of shifting the allocation of saving from housing and towards business investment. 

Keyword tags: 
pensions
savings
income
GDP
business investment
Publication type: