Economic uncertainty not stifled need for regulation, says Hoban
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The current economic uncertainty in the UK has not stifled the need for regulatory reform of the financial markets, says Mark Hoban, the financial secretary to the Treasury.
Speaking at the Building Societies Association annual lunch in London today, Hoban told attendees: “There are some who would use the current economic uncertainty to pull the rug from under regulatory reform.
“Those that argue that regulatory reform and financial sector reform would stifle growth at a time of economic recovery.
“But I do not believe that recent events diminish the case for reform.”
He also claimed the government is sympathetic to the needs of the mortgage and housing markets.
He told the audience: “We are determined that creditworthy borrowers looking to buy a home or move should have access to affordable mortgages. And that goes hand in hand with ensuring we increase the number of homes built across the country.”
Meanwhile, Peter Griffiths, chairman of the BSA and chief executive of the Principality Building Society, called on the government to do better with its housing agenda.
He says: “At the micro-level shared ownership and shared equity are two potential solutions to address the deposit challenge facing buyers today. The mutual sector is working hard in these areas, amongst many others.
“At the macro-level people are developing new models for delivering new market and intermediate housing for rent or sale.”
But he says the market is yet to see an investment model that will draw in the billions of pounds from the major investment institutions needed to fulfil the nations housing requirements but a new financial framework is needed and needed now to fill this gap.
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