CML 'welcomes right to buy proposals'

Posted: 23 Dec 2011 14:54:21 GMT

The CML has lent its backing to the one-for-one replacement plan under the new right to buy proposals.

The Council of Mortgage Lenders (CML) has welcomed changes to the right to buy initiative "in principle".

Paul Smee, director general at the organisation, said the group supports the plans to replace right to buy sales with new affordable properties on a one-to-one basis.

The alterations were announced by housing minister and MP for Welwyn and Hatfield Grant Shapps, who said the move would result in more dwellings becoming available to buy for the two million UK residents currently living in social housing.

Mr Smee went on to point out the Financial Services Authority's recently-unveiled mortgage market review proposals "would require advice to be given on all lending to right to buy borrowers, which is a significant protection that we think makes sense".

He added lenders will have to make sure they stick to all the necessary regulatory requirements on the matter, while also taking into account the individual circumstances of those looking to benefit from the money.

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