1
Jun
Running on Empty
Nick Churton of Mayfair Office sees more buyers returning to the
property market but knows that many more would join them if they
could secure a mortgage.
He says "A
property industry without mortgage funds is about as useless as a
motor industry without fuel at the pumps.
At our recent
extensive round of Mayfair national property forums an
extraordinary picture unfolded. Many of our colleagues across
the country reported greatly increased levels of property
transactions, but in up to ninety per cent of cases these were
funded by cash buyers.
The banks are
still hoarding money – our money! Messrs Osborne and
Cable must get a firm grip on this problem. Scrapping Home
Information Packs can help the market but not if lenders
won’t lend. Together with the new Housing Minister,
Grant Shapps, they must somehow stop this logjam and allow eager
first time buyers the funds they need to climb onto the housing
ladder without continuing to apply crippling lending
criteria.
Releasing funds
will stimulate the rest of the market and allied industries.
Our property market won’t heal itself. It either needs
government intervention or enlightened banks and building societies
– preferably both. It is essential to get mortgage
funds pumping again. "
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