Mortgage market affecting new home building
Tue 27th May, 18:12:47 BST
The lack of housing in the UK is partly being caused by the trouble many people are having in obtaining a mortgage.
The Federation of Master Builders (FMB) has asserted that the lack of potential buyers is causing developers to reduce the number of house and flat building projects they are working on.
Brian Berry, director of external affairs at the FMB, said that the credit crunch is ultimately to blame as lenders have tightened their criteria and reduced the number of products they have available.
He commented: "The credit crunch has made lending much more difficult, with the result that the recent upturn in house building has stopped as housebuyers find it much more difficult to obtain a mortgage."
Mr Berry went on to say that he believes the shortage of housing is an issue which has been growing over the last decade.
"Britain has experienced a growing demand for more housing at a time when there has been an under supply of new homes," he added.
The Federation of Master Builders (FMB) has asserted that the lack of potential buyers is causing developers to reduce the number of house and flat building projects they are working on.
Brian Berry, director of external affairs at the FMB, said that the credit crunch is ultimately to blame as lenders have tightened their criteria and reduced the number of products they have available.
He commented: "The credit crunch has made lending much more difficult, with the result that the recent upturn in house building has stopped as housebuyers find it much more difficult to obtain a mortgage."
Mr Berry went on to say that he believes the shortage of housing is an issue which has been growing over the last decade.
"Britain has experienced a growing demand for more housing at a time when there has been an under supply of new homes," he added.
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