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CML initial reaction to Budget

22 Jun 10

CML initial reaction to Budget

The Council of Mortgage Lenders is unsurprised by the content of today's Budget as it relates to the housing and mortgage markets.

CML director general Michael Coogan commented:

"We knew today's Budget would be hard-hitting across the piece, so it is no surprise that housing has not escaped. We understand the tough choices that the government has to make - but obviously that does not mean they are attractive.

"In a world of imperfect choices, steps that help the economy to recover and help to maintain mortgage rates at affordable levels for most people are the measures that will underpin a healthy housing market in the long term. But in the short term pain is likely, as the effect of tax rises on household finances dampens the already fragile recovery in house-buyers' confidence, housebuilding is affected, and support for housing costs across all tenures is curtailed.

"In housing terms this may be the "age of aspiration" as the housing minister said recently, but against an austere backdrop there is a long way to go before the supply of housing, or the ability of would-be home-owners to achieve their aspiration, are likely to show any significant pickup."

Notes to editors

1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 94% of all residential mortgage lending in the UK. There are 11.4 million mortgages in the UK, with loans worth over £1.2 trillion.

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