CML responds to Scottish government housing announcement

Commenting on today’s announcement by Nicola Sturgeon, Deputy First Minister, Kennedy Foster, CML Scotland policy consultant said:

“We look forward to further discussion on these issues and policies with the Scottish government. Conditions in the mortgage and housing markets remain volatile as a result of the credit crunch and we urge the government to proceed with caution in the increasingly uncertain economic environment.

“The creation of the homeowners’ support fund is a welcome move and will reinforce the steps lenders are taking to support borrowers in difficulty. We look forward to consulting with the Scottish government on this fund and fully support calls for the UK government to reform Income Support for Mortgage Interest. We hope that these moves will encourage Ministers down in Westminster to stop dragging their heels on reforms to the state safety net, which are urgently needed to help those borrowers who encounter a severe change in their financial circumstances.

“We are also pleased to see recognition of the important part lenders play in the delivery of new social housing and confirmation of the regulator's role in reassuring lenders on the governance and sustainability of registered social landlords. The Scottish government should be aware, however, that in the present environment reliance on open market sales to subsidise registered social landlords' development looks increasingly unsustainable.”