Storm clouds are looming over Britain’s housing market
Government intervention has inflated house prices to unsustainable levels. A crash is coming – and those on lowest incomes will suffer, writes Peter Brown.
Government intervention has inflated house prices to unsustainable levels. A crash is coming – and those on lowest incomes will suffer, writes Peter Brown.
‘Support for mortgage interest’ for 110,000 people is being cut and less than 10% have applied for the loan offered by Serco to replace it.
The coalition is still failing to get banks lending to businesses, new figures from the British Bankers’ Association (BBA) reveal, despite the introduction of the government’s Funding for Lending Scheme (FLS), which gives cheap funding to banks on the basis that they lend money to households and businesses.
Nearly one in five of adults polled said they always or often struggle to pay their rent or mortgage, reports Dave Prentis, General Secretary of UNISON.
Figures released today by the Bank of England suggest households’ demand for borrowing remained weak in September. Net lending secured on dwellings (i.e. mortgage borrowing) increased by only £0.1 billion in the month and was just 0.8 per cent higher than in September 2009.