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Mortgage finance 'holding back' new homes market
Access to mortgage finance is the single greatest threat to the new homes sector, Knight Frank has claimed.
In a survey, it found that 39 per cent of builders suggest implementing subsidised mortgages to help first-time buyers.
Steve Turner, head of communications at the Home Builders Federation, agrees with the claim. He said: "People's inability to buy because of the lack of affordable mortgages remains the main constraint on house building."
"There is a huge pent-up demand for housing which is shown by the local authority waiting lists and by the very low numbers of first-time buyers currently buying," he added.
Indeed, Knight Frank reported that there will not be enough new homes built to supply the growing population, as housing starts are 43 per cent lower than they were in 2007.
To help the situation, the last Budget announced a £250 million fund to contribute to deposits for new build homes.
Mr Turner explained that there needs to be a return to "sensible levels" of mortgage lending to boost the industry.
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In a survey, it found that 39 per cent of builders suggest implementing subsidised mortgages to help first-time buyers.
Steve Turner, head of communications at the Home Builders Federation, agrees with the claim. He said: "People's inability to buy because of the lack of affordable mortgages remains the main constraint on house building."
"There is a huge pent-up demand for housing which is shown by the local authority waiting lists and by the very low numbers of first-time buyers currently buying," he added.
Indeed, Knight Frank reported that there will not be enough new homes built to supply the growing population, as housing starts are 43 per cent lower than they were in 2007.
To help the situation, the last Budget announced a £250 million fund to contribute to deposits for new build homes.
Mr Turner explained that there needs to be a return to "sensible levels" of mortgage lending to boost the industry.
Copyright
Published: 04/05/2011
The information in this article was correct at the time of publication and contains time sensitive data and links, it may not be accurate at the time of reading.