Commenting, he said: "Much of the extreme lending being done pre the credit crunch, was clearly not sensible. However, with the market picking up alongside a shortage of lending we need to be careful not to deter consumers nor give banks an excuse not to lend money.
"We are unsure on how these new procedures will roll out, yet in light of the demise of the stamp duty holiday and the inevitable rise in VAT we must take a sensible interpretation of these guidelines and find the right balance. If these guidelines take us to the opposite end of the spectrum they could do untold damage to the housing market, which is currently showing promising signs of recovery."
