NAEA chief responds to paper on mortgages

Posted: 13 May 2009 11:00:00 GMT

A new publication on the state of mortgages in the UK has not found the right balance between being strict and responsible, according to the National Association of Estate Agents (NAEA).

Peter Bolton King said that the Institute for Public Policy Research's (ippr) paper, The Madness of Mortgage Lenders: Housing Finance and the Financial Crisis, is too "draconian".

The ippr report calls for a number of measure to be implemented that will reduce the amount of money lenders can give to people looking to buy property. It also suggests that first-time buyers may find it more difficult to get on the housing ladder as a result.

Mr Bolton King suggested that millions of homeowners in the UK will disagree with the paper's comment that a drop in house prices is "a welcome necessity".

"It is right and proper that irresponsible mortgage lending is discouraged," he explained. "However there is no justification for sweeping measures that could prevent responsible first-time buyers accessing finance that will allow them to buy their own home."


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