The HBF wholeheartedly welcomes today’s belated announcement by Government to extend the credit guarantee scheme, something it has been demanding for a number of months and as recommended by Sir James Crosby in his report on mortgage finance in November. However, the key to the success of the measures will be the bank’s reaction and the extent to which they take up the facility. If implemented successfully and combined with a wider package of measures, HBF believes today’s announcement could finally start to reverse the downturn in the housing market, so critical to the wider economy. HBF also welcomes the commitment by Government with regard to changes in Northern Rock’s lending policy. It must be hoped that the influence the Government now has with the other major mortgage lenders will result in similar commitments. Speaking today, John Stewart, director of economic affairs at the HBF said; “This is a positive move by Government to address the key issue affecting the housing market, namely the lack of mortgage finance. The Government must now work with lenders to ensure banks use the facility to assist beleaguered home buyers. Restoring sensible levels of mortgage lending is absolutely critical to any recovery, and if combined with further measures to assist first-time buyers, and steps to get new home building sites started, should make a real difference to the housing market and thus the wider 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 2. HBF believes that further action to assist first time buyers, in addition to last months very welcome announcement on Homebuy direct – which HBF worked with Government to develop, is needed; HBF is also talking to the new Homes and communities agency about ways to use public money to kick start new house building sites. For media enquiries, or to arrange an interview, please contact Steve Turner 020 7960 1606 07919 307 760 steve.turner@hbf.co.uk
