The government must do more to stimulate the construction of new housing, mortgage industry experts have warned.
Speaking at the Mortgage Expo 2016, John Phillips, national operations director, Spicer Haart and Just Mortgages said: “We need the government to step up and to stimulate the market – it’s a lack of confidence that really causes an issue.”
Highlighting the recent £5bn Home Building Fund announced by Chancellor Philip Hammond and Communities Secretary Sajid Javid, the industry leaders said more policies must be found that encourage smaller and medium-sized construction companies to build more homes.
Esther Djikstra, director strategic partnerships at Lloyds Banking Group, said: “I think it’s important the government gets involved, as the big builders are already at full capacity – we need to look at encouraging smaller builders to get building.”
Matthew Wyles, executive director, Castle Trust, said: “The government has announced a £5bn, £4bn of which has already been committed, so there’s only £1bn of new money. It’s important they do more, as obviously they can play a really important role, and this is an extremely significant issue.”
Chris Whitney, head of commercial finance at Enness Private Clients, added: “The government must do more, as the £5bn fund isn’t new money – it’s just been repackaged and recycled. And it’s difficult for small and medium-sized lenders to actually get hold of it. What they have announced, which is a good idea, is the use of unused public land.”