CML welcomes the launch of a new shared equity task force

The Council of Mortgage Lenders (CML) welcomes yesterday's announcement of a shared equity task force by the Office of the Deputy Prime Minister (ODPM) and HM Treasury. The task force, which is charged with looking at the shared equity market and the potential for working with the private sector, is a crucial step forward in meeting the aspirations of many people who want to own their own home.

At the beginning of October this year, the government will launch the Open-market HomeBuy scheme, which will help around 40,000 people onto the property ladder over the next five years with the help of privately financed equity loans. Under Open-market Homebuy the borrower will get a 75% conventional high street mortgage with the remaining 25% being made up from equal loans from the government and mortgage lenders. This scheme will give both government and lenders real experience of operating a public/private scheme for first-time buyers and we hope the shared equity task force will be able to build on this in the future.

Commenting on the launch of the shared equity task force, CML Deputy Director General Peter Williams said:   

"The government's estimate of a million households who probably want to buy a home but can't afford to do so is a powerful reminder of the challenge facing the new shared equity task force. The CML welcomes this new development as it promises to put low-cost home-ownership in the mainstream of government funded activity. There is a growing groundswell of support for the private sector to help take this agenda forward, and what we now need is a firm commitment from government to build a sustainable shared equity market - an opportunity the new task force must grasp." 

Notes to editors

1. The CML's members are banks, building societies and other lenders who together undertake around 98% of all residential mortgage lending in the UK. There are 11.6 million mortgages in the UK, with loans worth around £967 billion.

2. The press release launching the shared equity task force can be found on the Office of the Deputy Prime Minister (ODPM) website.