‘Chancellor must take decisive action to boost housing market and thus the wider economy’ The HBF is today calling for radical action in next week’s Pre-Budget Report to assist the housing market, such a critical barometer and determinant of the wider economy. It is calling on the Chancellor to: Use the influence Government now has in the banking sector to insist some sensible levels of mortgage lending return, as was promised by the Chancellor when the package to inject cash into the banks was announced last month. Reallocate a significant part of the Housing Corporation’s budget – that will not now be spent as planned because of the current downturn - to buy both empty new homes, and to unlock sites on which development could start immediately with an injection of up-front public money and be developed using public private partnership agreements. Overcome barriers and put in place incentives that would encourage new sources of housing demand, such as institutional investment in private rented housing, and allowing Self-invested Person Pensions (SIPPs) to invest in residential property. Stewart Baseley, Executive Chairman of the HBF said today, “We have reached the stage where radical and decisive action is needed to assist the housing market. Whilst the moves made by Government so far are welcome, they have in no way been comprehensive enough to address the scale of the current housing crisis. With the housing market so absolutely critical to the wider economy, the Chancellor cannot miss the opportunity presented by the Pre-Budget Report. Allied to the long awaited cuts in interest rates, restoring mortgage lending, injecting cash directly into building projects and introducing measures to encourage large new investment in residential property would boost the housing market, the benefits of which I believe would ripple through 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
