It is unrealistic to expect everyone in Britain to become a home owner, the economist who led the government’s inquiry into housing said on Tuesday as she warned that difficult choices lay ahead if instability in the housing market was to be reduced.

Kate Barker said people had to be realistic about what housing could do for them. “A house cannot be our pension, care insurance, loan collateral and children’s inheritance,” she said. “It cannot be a liquid asset for landlords and at the same time provide long-term security for tenants.”