The mortgage market in the UK would benefit from a joined-up approach between market forces and the government.
This is the view of Paul Smee, director general of the Council of Mortgage Lenders (CML), who suggested this method could help to loosen the stalemate seen in the home loan market at present.
Mr Smee observed this might also help to encourage conditions that would improve the sustainability of the sector.
He was speaking at the annual conference of the CML – whose members account for around 94 per cent of residential mortgage lending in the UK – and drove home the point that better mortgage market settings can be achieved with a little extra effort.
Although hurdles such as negative sentiment and regulation remain in place, a combined strategy from the Conservative-Liberal Democrat coalition, industry figures and regulators could see these obstacles overcome.
However, Mr Smee warned the government should not adopt the position of solution designer in this instance, adding: “If it defines its role as being a catalyst, a prodder and pusher of others, then it can maximise its impact. I have seen this in several markets.”