Mortgage lending 'main constraint of housing market'

Posted: 13 Jan 2010 10:33:46 GMT

The current lack of mortgage lending is the main constraint on the housing market at present, according to one construction expert.

Steve Turner, head of communications at the Home Builders Federation, says: "People can't get access to realistic deals to allow them to buy homes so developers are not going to build something that the customer can't afford."

He states that while this is the key issue in terms of the problems that the house building industry faces, the market is looking more positive than it was at this time last year.

Mr Turner goes on to add that the industry requires continued investment from the government in order to see a stabilisation of the housing market.

His comments come in response to a recent announcement from housing minister John Healy, who pledged an extra £122.6 million to build new council homes in the UK.

Mr Turner advises that government investment such as this needs to continue to allow affordable housing to be accessible to more people.

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