CBI Challenges Government to Kick Start Housing MarketMake Text Bigger
The government should remove the financial and planning constraints that are throttling the housing market in a bid to boost the economy, industry leaders have urged.
In a keynote speech planned to influence Chancellor George Osborne’s autumn budget statement, Confederation of British Industry Director General John Cridland spelled out what employers want to see.
His plan for growth includes:
- More spending on transport and power stations to kick start the construction industry and to create new jobs
- The return of an upgraded mortgage indemnity guarantee scheme (MIG) that protects lenders from the risk of falling house prices
- Pension linked mortgages for first time buyers
- More shared equity housing schemes
Cridland announced his proposals at a CBI dinner in Gateshead.
“Bolstering infrastructure spending investment on transport, power stations and housing is one of the biggest and most effective levers the government has to pull,” he said.
“It will help unlock some of the £60 billion of potential investment currently on company balance sheets and could create new jobs into the bargain.
“I want to see the chancellor use his autumn statement on November 29 to jump-start the housing market.”
Quoting figures from the Council of Mortgage Lenders, Cridland told his audience that 36,200 first time buyers bought homes in the first three months of 2011, compared with 43,600 a year earlier and 167,400 in the same period of 2001, at the peak of the market.
“Now is the time to stop the stagnation and get the housing market flowing again,” he said. “As we have seen, without a steady stream of eager first-time buyers the housing market stagnates and our whole economy suffers.”
“A determined attack on the major blockers of finance and planning could transform the outlook of a generation of young people and provide a huge fillip to consumer and business confidence.”
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