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A little less conversation, a little more action

by: John Heron
  • 22/05/2012
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A little less conversation, a little more action
We continue to see regular discussions about the housing crisis in the UK and the role of the Government in getting things moving.

In April, the HSBC Great Housing Debate discussed a whole range of issues including housing transactions, first-time buyers, buy-to-let, housing supply, right-to-buy and stamp duty.

The panel of experts at the debate were in agreement that housing transactions will remain broadly flat over the next 12 months.

IMLA members also came to a similar conclusion with the majority expecting gross lending in 2012 to be no greater than the £141bn in 2011. We intend to provide an update on member views next month.

The Great Housing Debate panel were sceptical about the governments NewBuy scheme; Financial Journalist, Paul Lewis took the view that house builders already have access to enough land to help solve the housing crisis in a few years if they were motivated to build.

Early figures from Canaccord Genuity, which contacted the top ten UK house builders, suggest a paltry five homes have been sold under the NewBuy scheme.

However, figures from the Home Builders Federation suggest another 400 people have reserved new homes. It is early days but, as IMLA predicted, this scheme has been slow to take-off.

I was also interested to hear the views of former Labour Chancellor Alistair Darling whilst leading a discussion on housing policy at the BSA conference in early May.

His comments on the role of the private rented sector provoked a range of reactions especially on whether we have seen improvements in this sector.

IMLA supports Darling’s call for a well thought out, joined up housing policy, indeed it is something that has long been called for by IMLA and others.

The need to translate all this talk into an action emerges as a strong theme from all of these conversations and it is important to keep reiterating this point.

Housing is and will remain important, not only to ensure everyone has an affordable home but also because of the link the mortgage market has to the economy.

Everyone is in agreement that we need more housing, homes to buy and to rent but unfortunately making this happen is a very slow process.

John Heron is the chairman of the Intermediary Mortgage Lenders Association (IMLA)

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