Bath Building Society has welcomed the Government’s new housing initiative aimed at kick-starting the UK’s stagnant domestic construction sector.
The society, which is already at the forefront of developing innovative mortgages to help new entrants into the housing market, believes the broad perspective of the Government’s policy will create real benefits for the economy and house buyers.
Chief executive Dick Jenkins said: “What particularly caught my attention is the breadth of the initiatives being talked about, from looking at planning issues to the lending side and, of course, stimulating the housebuilding sector.
“This appears be a well thought-out and significant initiative that could free up the system, not just helping first-time buyers, but everybody in the housing market.”
He said any action that takes the housing market out of the doldrums would benefit everybody, given its key role in the economy.
“It won’t be just house buyers or builders that will be heartened to hear that the Government wants to give a boost to this sector. People selling carpets, furniture, DIY goods, as well as a whole host of trades will be eager to see what the Government unveils.”
Bath Building Society (BIBS) has maintained its lending throughout the recession and expects next year’s figure to be higher than 2010 and 2011.
Its innovative parent-assisted and income-plus mortgages have allowed many first-time buyers to get onto the housing ladder. The former uses equity in borrowers’ parents’ homes to secure a higher loan-to-value than would otherwise be available, up to 95%. The latter allows single borrowers who share their homes with friends or lodgers to take account of rental income in determining mortgage affordability.
