The Communities and Local Government select committee has called on the Treasury to support the mortgage market and continue with plans to build more social housing.
The Department for Communities and Local Government (CLG) must urge the Treasury to take action to improve the mortgage market, according to a new report from the CLG select committee. The Housing and the Credit Crunch report also calls for the establishment of more social housing and continued efforts to improving existing stock.
Closer monitoring of repossession activities and harsher penalties for those lenders who do not comply with guidelines is also encouraged by the select committee of MPs.
Dr Phyllis Starkey, chair of the committee said that despite the recession there is still a risk of undersupply in the housing sector, with the need for new homes still apparent.
"The credit crunch has not reduced the number of households needing new housing, nor does it affect the need to address years of undersupply," she commented. "The message which we received from witnesses during our inquiry was clear: the steps the government is taking are welcome, but further action is needed if the government is to have a chance of meeting its targets for home building and achieving the goal of a decent home for all."
The report also stresses the "urgency" of and Office of Fair Trading recommendation for sale-and-rent back schemes to protect those homeowners struggling with mortgage payments from "unscrupulous landlords".
