Tighter mortgage regulations 'not the answer'
Stricter government regulation of the way mortgages are approved is not necessary, in spite of recent failures in the industry.
That's the opinion of first-time buyer specialist Firstrung, which has said that "interference" from officials in Whitehall would primarily be focused on protecting property values.
Paul Holmes, chief executive of the firm, explained that cheap and readily-available credit has undoubtedly helped boost the value of property for sale in London and elsewhere.
But he said access to funds must be proportionate to individual borrowers' wealth, and that if property values are now due to fall then the government should step back and allow the market to realign.
"The only times in history that governments tend to step in and wield the axe or create legislation is when things are not going in their favour," he asserted. "The only interference that we'd see from the government would be to protect house prices."
Mr Holmes added: "I say let the market run amok, let it fall to bits. You can't have it both ways - you either have a free market, capitalist system, or you don't."
Published 18th July, 2008
© 2008 Estates IT Limited
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Stricter government regulation of the way mortgages are approved is not necessary, in spite of recent failures in the industry.