The current issue of CML News & Views looks at what different authorities have been doing, and what the consequences have been in a fast-moving and febrile environment.
In the UK, intervention has mainly focused on protecting the interests of depositors and taxpayers. Thursday's decision by the Bank of England's monetary policy committee represents an opportunity to show that wider concerns about an economic downturn now outweigh fears about inflationary pressures. The Crosby review is also overdue, and we would now like to see it published as soon as possible, so that there can be concerted action to improve confidence in mortgage funding markets.
Finally - to paraphrase Mark Twain - reports of the death of buy-to-let have been greatly exaggerated following the nationalisation of Bradford & Bingley. Funding constraints are continuing to affect mortgage availability, as they are elsewhere in the market. But buy-to-let has contributed to a revival of the private rented sector. And it remains firmly underpinned in the long term by strong fundamentals - including the growth of households, consumer demand for rented property and a continuing shortage of housing.
