MPs urged to debate affordable homeownership

Posted: 14 Jul 2010 13:01:23 GMT

A debate over the affordability of property in the UK is required to clarify government objectives and commitments.

That is the suggestion of the Council of Mortgage Lenders (CML), which highlighted the problems the country's public debt could cause.

According to the organisation, all three of the main political parties made proposals concerning low-cost homeownership in the run-up to the general election.

However, with lenders continuing to restrict mortgage funding, it called for politicians to hold discussions over the issue.

"To what extent will the government be able to sustain existing commitments - or develop alternatives?" the CML asked. "Do larger lenders have the desire and capacity to provide increased funding?"

Earlier this week, Selwyn Lim of Mouseprice.com noted falling prices may not necessarily be allowing first-time buyers to get on the property ladder.

While homes could be becoming more affordable and interest rates are low, he argued this can be "useless" if a prospective homeowner is unable to secure finance.


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