One of the headline announcements of George Osborne's 2013
budget was a stimulus for house building. Taxpayer-underwritten
mortgages will finance new building developments to the tune of
£15.5 billion.
But what effect will this attempt to jump-start home ownership
levels have on letting agents and landlords?
Brendan Cox of Waterfords estate agents, said: "It will have an
effect on the whole of the market, as people who couldn't afford
such a large deposit will now have the help they require. It means
first-time buyers will be able to get to the market earlier and get
out of rented accommodation."
Could the 2013 Budget make UK housing more
vulnerable?
Others were concerned that the
Chancellor's decision could make Britain overly susceptible to a
second property crash. Angel Mas, president of mortgage suppliers
Europe, said: "He said: "It is extraordinary that - given the
existence of capacity and expertise in the private mortgage
insurance sector - the Government has not yet considered the
involvement of private mortgage insurance in order to reduce the
risk to the UK taxpayer.
"Given the role of irresponsible lending in the crisis, this
seems an oversight that puts the taxpayer at unnecessary risk,
whilst leaving the Government in the hands of the banks when it
comes to ensuring prudent lending standards are maintained under
any extended scheme."
But not everyone is pessimistic. Ian
Fletcher, director of policy at the BPF, chose to focus on the 1bn
being made available for "built to rent" : "It's encouraging the
Government's confidence in build to rent has been reciprocated and
we are delighted to see that the equity funding was heavily
oversubscribed. Working in partnership with Government, the sector
should deliver an exciting and quality array of homes for
renters."
