1
Jun
RUNNING ON EMPTY
Ben Marchbank of Bedfords sees more buyers returning to the
property market but knows that many more would join them if they
could secure a mortgage.
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.