Michael Coogan, director-general of the CML, was unsurprised by the content of the Budget in relation to the housing and mortgage market, and said everyone had known it would be a “hard hitting” piece.
Coogan said: “It is no surprise that housing has not escaped. We understand the tough choices that the Government has to make, but obviously that does not mean they are attractive.”
He said that steps that helped the economy to recover and maintain mortgage rates at affordable levels were measures that would underpin a healthy housing market in the long-term.
However, Coogan added: “In the short term pain is likely, as the effect of tax rises on household finances dampens the already fragile recovery in house-buyers’ confidence, housebuilding is affected, and support for housing costs across all tenures is curtailed.
“In housing terms, this may be the “age of aspiration” as the housing minister said recently, but against an austere backdrop there is a long way to go before the supply of housing, or the ability of would-be home-owners to achieve their aspiration, are likely to show any significant pickup.”
