Monday, 02 May 2016

Government insists guarantee scheme is working

The government has claimed its efforts to improve the availability of credit for homeowners are working, in response to criticism from MPs.

In July the Communities and Local Government select committee warned the Treasury’s £50 billion guarantee scheme for asset-backed securities was not working, in a follow up report to an earlier enquiry into housing and the credit crunch.

The Communities and Local Government department has now published its response to the report. It states: ‘The Bank of England’s latest credit conditions survey suggests a net balance of lenders reported an increase in the availability of secured credit to households in the three months to mid-June 2009, the first positive net balance since September 2007.

‘This resulted primarily from an improvement in the cost and availability of funds to lenders. A net balance of lenders was expecting a further increase in the availability of secured credit to households over the next three months.’

The select committee had also argued the government was too focused on promoting home ownership at the expense of the private and social rented sectors.

The response says: ‘We note the committee’s support for a review of the balance of tenure. However it remains the aspiration of the majority of people in this country to own their own home and the government continues to support home ownership where it is affordable and sustainable.

‘Nevertheless we recognise that homeownership is not suitable for everyone and it is important for a range of tenure to be available.’

The report points to the Rugg Review of the private rented sector, and the publication of new guidance on allocations for social housing as evidence the government is not neglecting other tenures.

Readers' comments

Comments are only open to subscribers of Inside Housing

Already a subscriber?

If you’re already a subscriber to Inside Housing, your subscription may not be linked to your online account. You can link your subscription from within the My Account section of the website and clicking on Link My Account.

Not yet a subscriber?

If you don't yet subscribe to Inside Housing, please visit our subscription page to view our various subscription packages.

Have your say

You must sign in to make a comment

sign in register

Newsletter Sign-up

Related

Articles

  • Regen: PM fails to guarantee terms for returning tenants

    13 January 2016

    David Cameron has failed to give a guarantee that social tenants returning to regenerated estates will be re-housed on the same terms.

  • Working together

    1 October 2015

    Housing associations must improve joint working to overcome the challenges ahead, says Malcolm Morley

  • Working together

    12 August 2015

    Collaborative working in the public sector can achieve better outcomes, says Jo Richardson

  • Government announces £50m for small builder scheme

    6 July 2015

    The government has announced it is going to provide £50m in match funding to boost a scheme designed to help small builders.

  • Working together

    12 June 2015

    A joined up approach to asset management can help every pound go further, says Colin Middlemass, chief operating officer at Mears Group

IH Subscription