CBI urges government to stimulate property market

Reported today by CFOWorld.co.uk John Cridland, director-general of the Confederation of British Industry (CBI), argues that the government should introduce measures to boost the UK property market as part of a wider effort to stimulate the economy.

British consumers are finding the UK property ladder increasingly out of reach with the number of first-time buyers securing a mortgage in the first three months of 2011 just 36,200 compared with 167,400 during the same period in 2001.

The securing of funding that they need will increase activity in the property sector and therefore  ultimately benefit the wider economy.

John Cridland has said that "The CBI wants to see a revitalised Mortgage Indemnity Guarantee, to reduce the risk of higher loan to value mortgages"  and that a way to boost ownership would be to allow buyers to access savings in their pension schemes through a loan-back scheme.

Cridland also says that he wants George Osborne to use his annual autumn statement to Parliament on November 29 to revive the housing market.