Brown pledges housing and mortgage reforms

The prime minister has announced plans to both increase supply of housing stock and introduce the flexibility of mortgage funding.

Gordon Brown promised to introduce a building program that will produce three million new homes by 2020.

He pledged to make the scheme a “national priority”, as it was in the periods following World Wars I and II.

The announcement was prompted by rising concerns over the plight of first-time buyers, who have seen rising house prices and interest rates hamper their ability to get on the housing ladder.

The Council of Mortgage Lenders (CML) welcomed the announcement that the government would be looking at introducing innovations in mortgage funding.

CML senior policy adviser Rob Thomas said: “Innovations in mortgage funding are a key driver for new types of mortgages, so the Treasury is right to examine this area closely.

“But the issue is just as much about the consumer appetite for long-term fixed rates as about how they are funded,” he added.

© Adfero Ltd

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