Housing assets, mortgages and small businesses

Few connections have been made in research, policy and practice between policy for small businesses and housing policy. In the UK, however, mortgages and housing assets are critical elements in the savings portfolios and collateral of most potential entrepreneurs. Changes in the values of these assets, and in the capacity of households to withdraw housing equity either by borrowing or moving, have implications for the formation and continuation of small firms. Hence, it can be expected that the mortgage and housing crises have a negative (direct and indirect) impact on small firms.