David Cameron hits out at lenders

by Aaron Strutt

Jan 07 2011

Prime Minister David Cameron has hit out at banks and building societies for holding back the property market with new tighter lending criteria.

The Daily Mail reported on a visit Mr Cameron made to Leicester where he spoke to voters. He said that it is vital for the economy that Britain's housing market becomes more competitive and he is quoted as saying: “In a way the pendulum has now swung too far the other way. If you are a single person, you are earning a decent salary. You go to the bank or building society, you are actually quite a good risk – they won’t give you 80% of the value, they won’t give you four times your salary. The housing market has become stuck and we’ve got to get it moving again.”

Housing minister Grant Shapps was expected to meet Hector Sants, the chief executive of the Financial Services Authority (FSA) this week to discuss the Mortgage Market Review. There have been fears that the FSA were going to clamp down harder with even tougher new rules, but it is likely that they now appreciate how far the banks have gone. Mr Shapps has previously said that he intents to ensure the FSA do not go too far.

Friday 7, 2011