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A top official at the Bank of England and adviser to the Government on housing has urged a rethink on the nation's obsession with home ownership. Speaking exclusively to LocalGov sister title The MJ, Kate Barker also said local authorities will have a key role in helping people survive the credit crunch. Ms Barker, who is a member of the Monetary Policy Committee which sets interest rates, was commissioned by Gordon Brown to review the housing sector. She said a potential fall in housing supply in the next couple of years could lead to ‘all sorts of consequences'. ‘It wouldn't be surprising to see more people who are squeezed out of the market altogether and difficulty in keeping homeless numbers down.' In a clue to the change in official thinking she adds: ‘It's important to remember that the private rented sector should have a role to play. We shouldn't always think that home ownership is the be all and end all.' Ms Barker said: ‘Local authorities themselves would have to borrow money to put into the housing market and we can see general reluctance by lenders because they are worried about risk. ‘I don't have any radical opposition to it. But the mortgage market is a very different place. My feeling is that it's quite a difficult option.' A return to traditional council housing was also ruled out: ‘I have a little bit of sympathy for that but I don't see we are ever going to have a return to council housing on the scale that we had previously.' Click here to read the full transcript of the Kate Barker interview Also see the editor's blog

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Exclusive: Top Bank of England official calls for home ownership rethink

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