Over the last couple of weeks I’ve seen headlines about house prices needing to fall by 20% to get the market moving and that first-time buyers can’t get on the ladder.
Banks have created a situation where first-time buyers cannot get into the market, using the excuse that they must be responsible with lending.
On the basis that prior to government intervention they would grant a mortgage to anyone with a pulse, they did need to become more responsible. But are they taking advantage of the system to control the market?
They could not do this without support from other banks and as most of these are wholly or partly owned by the government, presumably it also supports this course of action.
How can this be though, when the likes of business secretary Vince Cable are so vocal in their insistence that banks should be lending more? Call me cynical, but I don’t think it is the first time a politician has told us one thing when meaning another.