6
Feb
Mortgage market 'needs help' from local authorities
The current mortgage market needs local authorities to step in and
provide options for would-be homebuyers, it has been claimed.
James Hulme is the head of communications for New Local Government
Network and commented on recent developments in the sector, which
saw Communities and Local Government lower the lending rate for
councils.
With Lambeth, Manchester and Bristol authorities - among others -
now potentially able to supply mortgages, it could increase
liquidity in the market and help it function more effectively, he
said.
Mr Hulme explained that from the 1960s to the 1980s, councils and
local government bodies were often one of the main mortgage
providers and, although normal circumstances would not see the need
for such action, now could be the time for the state to
intervene.
"We would argue that local councils have a good sense of what are
good and bad investments in terms of mortgages," he added.
"There is a lesser risk in allowing councils to do it than major
banks."