This has resulted in an acute housing supply crisis that has left people unable to buy, lengthening housing waiting lists and resulted in tens of thousands of builders losing their jobs.
The FLS could bring a number of benefits for home builders. Improved mortgage availability and lower rates should boost demand for new homes and allow beleaguered first time buyers in particular to realise their ambition of home ownership.
Any improvement in the wider housing market from increased mortgage availability will also help the industry. Home builders, especially smaller and medium sized companies, should benefit from any easing in the availability and cost of bank development finance.
Stewart Baseley, Executive Chairman at HBF said.
“This is a positive move. A lack of lending for individuals and businesses has been the main constraint on house building in recent years, making Britain’s housing supply crisis even more acute.
“However the success of the scheme is in the hands of the mortgage lenders. If they take advantage of the FLS and reflect its lower funding costs in lower mortgage rates, then we should see an increase in new home buyers. This in turn will bring a much-needed increase in economic activity and create tens of thousands of jobs across the country.”
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