View more on these topics

IMLA calls for Help to Buy extension

Bricks building housing construction

IMLA has called on the Government to extend the Help to Buy mortgage guarantee scheme beyond 2016 and to ease capital requirements on lenders that use the facility.

In a report today, The Intermediary Mortgage Lenders’ Association says loans made under the Help to Buy guarantee scheme should be given more generous capital relief, but instead they are currently treated like a securitisation.

It says: “A straightforward substitution of a tranche of mortgage risk for government risk when the government guarantees that mortgage tranche is completely justified.

“By comparison, treating each loan as a securitisation is unnecessarily complex and provides a less appropriate risk weight.

The report continues: “The Help to Buy guarantee scheme could then be continued as a mechanism to counteract the high (and potentially rising) capital requirements for high LTV lending.”

IMLA also slams Government housing policy, claiming that ministers have resigned themselves to only addressing the demand side of the market and are not doing enough to stimulate supply.

It says there have been too many “unpredictable shifts in policy” which is jeopardising long-term investment in bricks and mortar.

It says: “New taxes on buy-to-let and second homeowners amounted to a tacit admission by government that the previous policy of stimulating supply as the primary policy measure had failed to address the housing shortage.

“Instead government is now set on a path of managing demand, as well as trying to stimulate supply, to meet its over-riding policy objection of sustaining owner-occupation.”

However, the report warns that buy-to-let taxes have been “ruinous” for some landlords and that, according to the Institute for Fiscal Studies, rental housing looks set to become the most tax-disadvantaged asset class. IMLA warns that costs will be passed on to tenants.


Bob Young Fleet 2014

Fleet Mortgages introduces gifted deposits

Fleet Mortgages today announced a raft of criteria changes that take place immediately, including allowing gifted deposits to borrowers. The gifted deposits apply to donations from the immediate family. A solicitor must get identification from the gifter, as well as authorised bank statements. The criteria changes also tweak the lender’s minimum property valuation, maximum aggregate […]

Together hires Harrods Bank boss as retail chief executive

Together has appointed former Harrods Bank chief executive Peter Ball, as chief executive of its retail division. Before joining Harrods Bank, Ball (pictured) was Virgin Money Group product and commercial director. Together chairman Mike McTighe says: “We are delighted to have Peter on board. His wealth of experience in the financial services industry perfectly complements […]

One to One: Kevin Purvey, Coventry Building Society

The value of consistency, sticking to pledges made to brokers, and focusing on good customer outcomes Coventry recently released a 50 per cent LTV range. Can you explain more about this? Coventry is a growth business. Throughout my time with the Society we’ve grown by about 10 per cent each and every year, and this […]

10 September thumbnail

Johnson Fleming set to hold auto-enrolment support webinar

Two years since the process of auto-enrolment began, the looming re-enrolment deadline provides the perfect opportunity to assess whether the support you have in place, which may well have been hastily selected at the start, is fit for purpose. Johnson Fleming is holding a webinar on 10 September at 11:00 to discover the key issues and concerns you should consider when thinking about your current support options.


News and expert analysis straight to your inbox

Sign up
  • Post a comment
  • John Lacy 8th July 2016 at 10:40 am

    It’s all of this meddling in the marketplace that causes on-going problems. If the government had let the housing market reduce to its true level in 2008 to 2010 we would have had more negative equity at that point but an end to the affordability problems that have dogged the market for years.
    Please stop calling for more interventions as the laws of unintended consequences will kick in and make the situation worse