29
Jan
Government urged to act on lending
The government should do more to increase the amount of lending to
consumers, including mortgages, a new report by the Treasury select
committee has argued.
Committee chairman John McFall commented: "The government must
ensure the availability of credit increases quickly and there is
still far more work to be done," advising that this is necessary
for economic recovery.
Mr McFall noted that this cannot be done through interest rates
alone as there is limited scope for these to drop further.
Further moves by the government that successfully stimulate an
increase in lending could help increase the supply of
mortgages.
Earlier this month the chief executive of the National Association
of Estate Agents, Peter Bolton King, said the "green shoots of
recovery" in the property market could be discerned from increased
activity reported by the association's members in December and
early January, but added these needed more "fluidity" in the
mortgage market to "take root".
