6 Feb

Mortgage market 'needs help' from local authorities

Mortgage market 'needs help' from local authorities

The current mortgage market needs local authorities to step in and provide options for would-be homebuyers, it has been claimed.

James Hulme is the head of communications for New Local Government Network and commented on recent developments in the sector, which saw Communities and Local Government lower the lending rate for councils.

With Lambeth, Manchester and Bristol authorities - among others - now potentially able to supply mortgages, it could increase liquidity in the market and help it function more effectively, he said.

Mr Hulme explained that from the 1960s to the 1980s, councils and local government bodies were often one of the main mortgage providers and, although normal circumstances would not see the need for such action, now could be the time for the state to intervene.

"We would argue that local councils have a good sense of what are good and bad investments in terms of mortgages," he added.

"There is a lesser risk in allowing councils to do it than major banks."ADNFCR-1222-ID-19012113-ADNFCR

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