Anorak News | Darling To Tackle Housing Crisis

Darling To Tackle Housing Crisis

by | 10th, July 2007

darlingandbrown.jpgWITH Government ministers now settling down after their recent Gordie-inspired game of musical chairs, it’s back to business – back to the business of keeping the voters sweet.

One doesn’t have to be a political genius to realise that the current mortgage and housing situation is one of the nation’s most pressing issues, but don’t fret, for new Chancellor Alistair Darling is on the case, ready to sort out of the mess.

The Chancellor wants to tackle the problem of mortgage lenders and their penchant for short-term fixed-rate deals by increasing the number of fixed-rate mortgages lasting up to 25 years.

Says the Government’s new Darling: “When you look around the rest of Europe, it is more common to have longer-term fixed rates. We need to look at that. We need to reduce the volatility. Brokers want you to come back every two years, rather than every ten or 20. The Financial Services Authority has identified this as a problem.”

Indeed, a review from leading UK economist David Miles into Britain’s lack of long-term fixed-rate mortgages was commissioned by the Treasury three years ago. However, only now, is New Labour (apparently) preparing to seriously tackle the issue.

The Chancellor also wants to tackle the housing crisis in the country by simplifying the planning system and increasing the number of new houses built. Whether he’ll actually do anything is another question.

Posted: 10th, July 2007 | In: Money Comment | TrackBack | Permalink