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Mortgages

Volume 491: debated on Wednesday 22 April 2009

To ask the Chancellor of the Exchequer (1) what recent assessment he has made of the effect of the levels of activity of specialist lenders in the UK mortgage market on (a) the availability of buy-to-let mortgage finance, (b) competition in the provision of buy-to-let mortgages and (c) the ability of the private rented sector to meet housing need; (265151)

(2) pursuant to the oral Statement of 19 January 2009, Official Report, columns 482-86, on financial markets, what plans he has to facilitate an increase in the supply of mortgage finance for investment in the private rented sector through the lending support schemes being developed by his Department.

On 19 January, the Government announced measures designed to reinforce the stability of the financial system, to increase confidence and capacity to lend, and in turn to support the recovery of the economy. These build on measures announced on 8 October last year.

These measures have helped to stabilise the credit market. This is an essential condition for banks to develop greater confidence to lend in the future to creditworthy businesses, home-owners and consumers.

The Government value and support the role of private rented sector in providing flexible accommodation for many households. In 2008 the Government commissioned an independent review of the private rented sector by Julie Rugg and David Rhodes. The Government expect to publish their initial response to their report later in the spring.

The Council of Mortgage Lenders (CML) publishes data on lending, including buy-to-let lending, available at:

http://www.cml.org.uk/cml/statistics