Monday, November 21, 2011
Housing strategy - a step in the right direction
Posted by David Smith at 12:00 PM
Category: Thoughts and responses

The government's housing strategy, announced by David Cameron and Nick Clegg, "will break the current cycle in which lenders won't lend, builders can't build and buyers can't buy. We'll be making it easier for people to secure mortgages on new homes, help people get on the property ladder, address unfairness in social housing and ensure homes that have been left empty for years are lived in once again."

If it does all those things it will be quite a significant success. The package, which can be accessed here, ticks most of the right boxes. The main doubts are about the scale of the plans and whether it will really unlock the main problem of the housing market, inadequate mortgage funding. To do that it will have to open up mortgage securitization again. It is not clear it will do that.

I set out the importance of housebuilding to the economy - and the recovery - a while ago, in this piece.