RICS wants increased funding for mortgage sector
Officials from the Royal Institute of Chartered Surveyors have called for an increase in funds to be injected into the mortgage sector.
The institute has already been urging the government to invest more in the mortgage sector given the bleak figures and the lack of mortgage availability that has been evident since the onset of the global credit crunch, and it has now made another call for the government to invest more money in this flagging and struggling sector.
The call from RICS came as the Bank of England released data that showed mortgage approvals for the month of January had dropped by a whopping 60 percent, reflecting the poor state of the mortgage lending industry, which has of course had a knock on effect on property sales and house prices. Around 31,000 mortgages were approved for house purchases during the month, with the number of new buyers remaining stable, according to the central bank figures.
The Royal Institute of Chartered Surveyors did admit that there was likely to be some effect as a result of the announcement that were recently made regarding increased mortgage lending by nationalised or partly nationalised banks such as Northern Rock and the Royal Bank of Scotland.
However, it added that the effects would not be highly significant, and would mean an increase in finance of around 10 percent on last year’s figures.
RICS stated: “This demonstrates the need for the government to make speedy progress with its plans to introduce the guarantee scheme for mortgage backed securities as announced in the pre-Budget report.”
The government has already ploughed billions of pounds into the mortgage and banking industry over recent months in order to try and get mortgage lending moving again, but the market still remains very restricted, especially for groups such as first time buyers and those on lower incomes.
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