View more on these topics

Imla questions Labour house building plans

The Labour party’s plans to fund housebuilding through Help to Buy Isas may be unworkable in practice, an industry trade body warns.

The party says it will use Isa funds to generate a £5bn Future Homes Fund to drive investment in new sites where local first-time buyers will get priority over 125,000 new homes. 

Savers will be guaranteed the same return on their investment and be able to withdraw their money at any time, while any bank or building society offering the Isas will have to invest the funds in housing.

A Labour government would additionally underwrite every pound of the Isa investments put into the Future Homes Fund by extending existing government guarantees.

But Intermediary Mortgage Lenders Association executive director Peter Williams says: “There are already a lot of complexities in starting with the Help to Buy Isa schemes, like how you link the savings that people bring in with their mortgage, but these Labour proposals are a step further.

“Are people naturally agreeing they want their savings to be used to fund housebuilding? You would also need agreement from the lenders to deposit that into some kind of a fund, and both of those are questionable.” 



CML launches buy-to-let statement of practice

The Council of Mortgage Lenders has published a statement of best practice for non-regulated buy-to-let business to ensure lending is “responsible and clearly understood”. The trade body says 31 of its members have signed up to the principles, comprising 90 per cent of the market, and that any other member operating in buy-to-let will be […]


MAS halts TV ads as it cuts marketing budget by a third

The Money Advice Service will no longer run TV advertising campaigns, says chief executive Caroline Rookes as the organisation slashes its marketing budget by a third. The MAS’s 2015/16 business plan, published last week, revealed its marketing spend for money advice services has been cut from £13.2m in 2014/15 to £8.8m. The FCA confirmed at […]


Leeds launches 10-year fix at 3.64%

Leeds Building Society has launched a new 10-year fixed rate at 3.64 per cent. The product is available to 80 per cent LTV and has a £999 fee. Borrowers can pay back up to 10 per cent of the loan each year without penalty. Otherwise, early repayment charges are set at 6 per cent in […]

How to cut mortgage fraud risk

Recent figures from Financial Fraud Action UK revealed a financial scam was committed, on average, every 15 seconds during the first six months of 2016, says Roy Armitage, head of credit at Lendinvest. That represents a 53 per cent rise year-on-year, with these scams coming in all shapes and sizes. Furthermore, a staggering 56 per cent of […]


News and expert analysis straight to your inbox

Sign up