In a comment made to BBC Radio Four’s Money Box programme, Darling argued that lenders had instigated and aided the rapid house price growth within the UK. He said: “Lenders need to be clear when they are lending money that someone can afford to meet the repayments and have not overstretched themselves.
“People should not be encouraged to get themselves into a position where they cannot make repayments.”
The comment followed industry research that revealed a continued rise in repossessions. However, lenders refuted suggestions that they were to blame for house prices rises. Michael Coogan, director-general at the Council of Mortgage Lenders, responded: “The Chancellor is simply wrong in his assertion that it is lenders’ fault. It reflects someone who is behind the times and off the pace.”
Jason Berry, Platform’s head of sales, echoed Coogan’s beliefs. He said: “The rise in UK property prices stems from a number of contributory factors and cannot be blamed on lenders. To infer that lenders are solely to blame for rapid house price growth through irresponsible lending is unfounded and a very narrow view of a far more complex social and economic situation.”
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