From 1st July the Council of Mortgage Lenders is integrated into a new trade association, UK Finance. For the time being, all UKF mortgage information will continue to be published on this website, and UKF member-only mortgage information will only be available here.

UK Finance represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation takes on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association. Please go to www.ukfinance.org.uk for wider content and updates from UK Finance.

Last updated: 25 September 2017

At a glance

  • The previous coalition government’s housing policy priority was “to rectify a situation where lenders couldn’t lend, so builders couldn’t build and buyers couldn’t buy.” To do this, it introduced a number of policies aimed at increasing the supply of newbuild property, including self-build and custom housebuilding, supported and enabled through the Self-build and Custom Housebuilding Act 2015
  • The Conservative government’s 2015 General Election manifesto stated their aim to at least double the number of custom-built and self-built homes by 2020, and take forward a new Right to Build - requiring councils to allocate land to local people to build or commission their own home.
  • This policy page draws together a number of newbuild issues that affect mortgage lenders and can be found on the tabs on this page.
  • Following the Autumn Statement 2016, the government announced that it is preparing a comprehensive set of housing measures to address the needs of people at different stages of their lives, to ensure a housing market that works for all. The Autumn Statement detailed investment of over £7.2 billion in housing - this will effectively double annual capital spending on housing.
  • This increased investment will mean a corresponding increase in the number of new homes being built and a breakdown of the additional investment has been announced by government as:
  1. a new Housing Infrastructure Fund of £2.3 billion to unlock new housing supply with the potential to deliver up to 100,000 homes
  2. £1.4 billion to deliver an additional 40,000 affordable housing starts by 2020 to 2021 - in addition, the government will relax restrictions on grant funding so providers can deliver a mix of homes for affordable rent and low cost ownership, to meet the housing needs of people at different stages of their lives
  3. £2 billion of funding to pilot ‘accelerated construction’ to speed up house building on surplus public sector land (£1.7 billion once Barnett Consequentials are factored in)
  4. £1.8 billion of extra spending by Housing Associations from sources other than central government

Why this is important for lenders

Lenders have to make individual lending policies with regard to the construction methods used for properties; taking into account the views of other professionals, such as building warranty providers, valuers and insurers.  

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The following content is available for Members only. If you are a member of this group please login or register to gain access.

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The following content is available for Members only. If you are a member of this group please login or register to gain access.

Register with CML

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The following content is available for Members only. If you are a member of this group please login or register to gain access.

Register with CML

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