The HBF today welcomed the coordinated Government and Bank of England action to address the current economic uncertainties and bolster consumer confidence. The Bank had acknowledged that there is no sign of inflation rising and so a Bank Rate cut was necessary and justified to boost the housing market and economy more generally. The Government measures announced this morning should bring stability to the financial system and increase confidence in the banking sector. But as the Chancellor stated whilst making the announcement, it has to result in an end to the current mortgage famine which is driving down housing transactions and weakening house prices. With the UK economy so heavily dependent upon a well-functioning housing market, these coordinated measures should have clear positive benefits for the wider economy. Stewart Baseley, Executive Chairman of the HBF said today; “The crisis in the world economy dictated that coordinated and decisive action was taken and we warmly welcome today’s announcements. I hope that the Chancellor will ensure that banks now start to restore mortgage lending to more normal levels and that he continues to work closely with the Bank to assess if further rate cuts are needed to support the economy.” - Ends – Notes to Editors: 1. The Home Builders Federation (HBF) is the principal representative body for private sector home builders and voice of the home building industry in England and Wales. The HBF’s 300 member firms account for some 80% of all new homes built in England and Wales in any one year, and include companies of all sizes, ranging from multi-national, household names through regionally based businesses to small local companies: www.hbf.co.uk For media enquiries, or to arrange an interview, please contact Steve Turner 020 7960 1606 07919 307 760 steve.turner@hbf.co.uk
