Initial response

Subject: Response to email entitled: Your discussion with banks regarding lending to prospective First Time Buyers
Date: Wed, 2 Mar 2011 17:38:18 +0000
From: Eleri.Jones@communities.gsi.gov.uk
To: x

Dear X,
Thank you for your email of 27 January, 2011, to the Housing Minister, the Rt Hon Grant Shapps MP, on First Time Buyers (FTBs) and issues with the housing market. I have been asked to reply.
I appreciate the time you have taken to bring your views to the attention of the Department. The Government would like to see a prolonged period of house price stability.  This does not mean permanent price stagnation, or price reductions, but it would be beneficial for the future health of the market and people’s ability to access and move within it, if prices were to rise, on average, no faster than earnings.
Achieving a stable housing market depends above all on the return to economic and financial stability which the Government is seeking to achieve through debt reduction and its commitment to abolish the structural deficit. This will help to keep interest rates low, improve credit availability and free up lending to FTBs and others.
Mortgage regulation which allows creditworthy borrowers access to homeownership, while preventing repossessions, is also essential to establishing a stable market. Responsible lending and responsible borrowing are both vital - borrowers need to demonstrate financial responsibility and show that they can sustain homeownership, and in return lenders need to support creditworthy homeowners.
The Government recognises that conditions in the housing market are still difficult, but is, however, committed to ensuring that we return to a stable, sustainable housing market that responds to demand.

Yours sincerely,

Eleri Jones

Eleri Jones
Housing Supply
Department of Communities and Local Government
1/A6 Eland House
Bressenden Place
London SW1E 5DU
030344 44054