CML responds to government's housing announcement

The Council of Mortgage Lenders (CML) has said that it is looking forward to further dialogue with the government regarding the delivery of housing improvements.

CML policy consultant for Scotland, Kennedy Foster, suggested that the organisation supports increased housing supply.

Her comments came after Nicola Sturgeon, health and wellbeing secretary, announced government plans for the future of housing in Scotland.

One point made by Ms Sturgeon was that independent regulation of housing associations will be maintained and will change so that it becomes independent of ministers.

Reflecting on the whole announcement, Mr Foster said: "Lenders have already responded to increasing affordability constraints by developing a number of products to assist first-time buyers into home ownership.

"But, while we support efforts to assist first-time buyers into ownership, we have serious doubts whether a grant for first-time buyers will improve affordability."

He also alluded to the 38,900 first-time buyers in Scotland in 2006, saying that proposed grants may be better spent on building "more homes for low-cost ownership".

In related news earlier this week, the CML predicted that the property market is set to slow down in 2008, which may be of interest to anyone looking to get a mortgage in the new year.