Insurance News Archive

MPs 'need to incentivise mortgage lending'

MPs need to take further action to incentivise mortgage lending and restore the market, according to experts.

The Council of Mortgage Lenders (CML) says the future of the housing market depends on the government.

"We think we need further action to incentivise new lending…The issue is shortage of funding and we are looking at trying to restore funding to the mortgage market," says a spokesperson for the CML.

She adds that the council wants the government to act on recommendations from July's Crosby report - "as soon as possible".

The report - conducted by Sir James Crosby, former chairman of HBOS, for the chancellor - outlined measures to revive the property finance industry,

It is a "complicated situation", with lenders facing a variety of challenges and circumstances, but they are "doing all they can", the spokesperson affirms.

The CML expects gross mortgage lending of around £145 billion next year, down from £258 billion this year and £363 billion in 2007.

22 Dec 2008