The group, which will be open to an industry-wide membership, will launch in early 2010 under the chairmanship of Tony Ward, chief executive of Home Funding.

It will identify solutions which can tackle the funding problems in the market and lobby key bodies such as the Treasury, Bank of England and the FSA to address them.

Ward, chairman of the group, said that the shortage in funding was the biggest problem affecting the mortgage market.

He added: “Without an increase in funding, the market is never going to function properly. We want to co-ordinate discussions between relevant parties such as trade bodies and investors so we can lobby the Government and work towards the common goal of increasing liquidity.” 

Melanie Bien, director of Savills Private Finance, said a practical solution to tackle the lack of funding in the market was sorely needed.

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She said: “A shortage in funding is certainly stopping people from accessing the market. Any group which is established to tackle this problem must be encouraged and needs support because this will not be an easy task.”