The UK Government today came under fire for initiating new measures to relax mortgage lending, a move critics say contradicts the government’s goal to make homes more affordable for first time buyers.
Looser mortgage lending rules will allow first time buyers to secure larger mortgages, inflating house prices – which will burden first time buyers with more debt, while pushing the dream of homeownership even further from future purchasers.
The current UK Government has repeatedly promised to tackle the housing crisis by increasing supply and making homes more affordable, at a time when average UK house prices have already reached a record high of GBP(£)270,000 according to recent data from the ONS.
“Yet house prices will rise if you stimulate demand by easing mortgage lending rules in a...