MPs think government mortgage plan will be a failure
August 14, 2009
MPs have recently stated that a government plan aimed at boosting the mortgage market is effectively doomed and will not have the desired effect. Officials from the Communities and Local Government (CLG) Committee said that the £50 billion scheme had been set to fail from the start, adding that in order to aid the mortgage market further measures had to be introduced.
Officials from the government have said that a lot of hard work has been put into improving the mortgage market and making mortgage loans more accessible for consumers.
However, a variety of industry officials and groups have said that unless something is done to make mortgage loans even more freely available the property market will struggle to make any sort of real recovery.
The chair of the Communities and Local Government Committee, Dr Phyllis Starkey, said: “In its current form the ABS is a leap that reaches across only half the chasm: impressive, but doomed to fail,” said chair of the committee.
If we are to meet house-building targets, then CLG ministers and senior officials must maintain pressure on the Treasury to bring forward new measures to get the mortgage markets moving.”
She added: “We now need a vigorous debate to review this approach and formulate a more coherent vision to guide effective housing policy and investment into the future.”
AS government official stated: “We continue to do all we can to help the housing market and are working hard with the Treasury and Council of Mortgage Lenders to improve access to mortgages.”
However, the Conservative Party said that the report had showed the government’s “inability to get beyond headline grabbing housing announcements which later turn out to be empty”.
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