29 Jan

Government urged to act on lending

Government urged to act on lending

The government should do more to increase the amount of lending to consumers, including mortgages, a new report by the Treasury select committee has argued.

Committee chairman John McFall commented: "The government must ensure the availability of credit increases quickly and there is still far more work to be done," advising that this is necessary for economic recovery.

Mr McFall noted that this cannot be done through interest rates alone as there is limited scope for these to drop further.

Further moves by the government that successfully stimulate an increase in lending could help increase the supply of mortgages.

Earlier this month the chief executive of the National Association of Estate Agents, Peter Bolton King, said the "green shoots of recovery" in the property market could be discerned from increased activity reported by the association's members in December and early January, but added these needed more "fluidity" in the mortgage market to "take root".

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