IMLA and Rics respond to pre-Budget report

Date:Tuesday 25th November 2008
Author: Rachel Fletcher

Measures detailed for mortgages and housing in the pre-Budget report have been welcomed by the Intermediary Mortgage Lenders Association (IMLA) and the Royal Institution of Chartered Surveyors (Rics).

Among the moves announced in the report were £775 million funding for social housing, help for eligible homeowners struggling with their mortgages and increased funding for a free and impartial debt advice service.

A new Lending Panel was also announced, which will require major lenders who are members to wait at least three months after an owner-occupier enters arrears before starting action for repossession.

The social housing funding was welcomed by IMLA, which also called for mortgage intermediaries to be represented on the panel.

Rics praised the action on repossessions, noting that the number of repossessions is "likely to rise to over 50,000 next year".

Regarding the Crosby Report on housing finance, Rics said the government would need State Aid approval from the European commission before it could bring in guarantees of residential mortgage-backed securities' principal and interest as recommended.