The CML indicated that the government needed to do more to minimise the number of arrears and repossessions within the housing market, and suggested that it should increase the £100,000 maximum mortgage sum eligible for income support for mortgage interest.
In its pre-budget report, the CML also called on the government to reform Stamp Duty tax, indicating that the current system was stopping aspiring first-time buyers from stepping onto the property ladder.
Bob Pannell, head of research and information at the CML, said: “Home ownership is far and away the most popular tenure in the UK. But it is surprising that at a time when the government is promoting the wider benefits of home ownership, the safety nets it has in place to help struggling home owners is being neglected.”
He added: “We strongly urge the government to demonstrate its commitment to sustainable home ownership by reviewing how the benefits system helps home-owners who find themselves in difficulty.”
Jonathan Cornell, director at Hamptons International Mortgages, said: “The difficulty is that traditionally, the government has not been very good at intervening in the mortgage industry and has had to rely on a number of lenders to support its HomeBuyers Scheme. If people are getting into financial difficulty because they can not meet repayments and are getting into arrears, then the government should be looking at why this is happening.”
