Mortgage Seekers 'must Be Helped By Government'

The government must do more to increase supply in the UK, an expert has said.

People currently searching for home credit deals such as tracker mortgages to suit residential properties would have more choice over where they live if the government took measures to improve its planning for new houses, an expert has suggested.

According to Vernon Pethard, managing director at online resource New Homes For Sale, the fact that there is a low level of housing and mortgages available in the UK at the moment merely serves to show that the Conservative-Liberal Democrat alliance needs to take "rapid steps" to tackle this issue.

Mr Pethard was speaking after the publication of a report by Glenigan on behalf of the Home Builders Federation earlier this month (January 7th 2011), which found that housing approvals in the third quarter of last year fell to just over 30,000, therefore representing the second lowest level in the past 19 quarters.

This is a fall from 2007-08 levels and the New Homes For Sale official noted that confusion over planning policies has been "exacerbating" problems in the property market over the last few years.

He added that it is therefore obvious that the coalition needs to ensure any new polices are "acted upon swiftly" if this ongoing issue is to be resolved.

"A delay in the granting of permissions for new-build homes will create a shortfall of new properties down the line and limited supply invariably puts upward pressure on prices which would further hamper the prospects of first-time buyers especially," Mr Pethard warned.

Furthermore, he insisted that the government needs to continue to place pressure on banks and building societies to increase the availability of home credit packages, as fluidity in the sector would be improved if this was to happen.

Meanwhile, SmartNewHomes.com reported recently that the average price of a new home increased by four per cent in November 2010 to £220,654.

By: Samuel Gooch

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