moneysupermarket.com comments on the Crosby report into the housing market

Commenting on the Crosby report into the housing market, Louise Cuming, head of mortgages at moneysupermarket.com, said:

"The report's rather gloomy findings strongly confirm the many problems facing the mortgage industry.

For consumers, the message remains the same: Low-cost borrowing is at an end and is likely to prevent many prospective first time buyers from entering the market.

"The squeeze on household budgets, caused by increasing food and fuel bills, also means fewer people are looking to move so there is a lower demand for mortgages.

We haven't hit rock bottom either as the shortage of finance in the mortgage securities market is likely to remain until late next year.

"Sadly, the one thing missing from the report is a solution.

The report is clear that reforms are needed and must be industry led, but it is doesn't make any concrete recommendations on what these reforms might look like.

The next steps outlined are based around further consultation and exploration of options.

But it is action that is needed now, not talking.

"Recent moneysupermarket.com research* shows a quarter of people feel they will never be able to afford a house, despite wanting to.

The Government should be in no doubt that this problem is having a widespread effect and requires urgent attention, not interim reports with little substance.".

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