Posts Tagged ‘CBI’
CBI says pensions should fund house buying
The CBI is calling for a radical rethink in the way house purchases are funded including allowing buyers to dip into their pension pot for the deposit on their first home.
The number of first-time buyers fell from a high of 167,400 in 2001 to 36,200 in 2011 with unaffordable deposits and financial insecurity making it impossible for many people to take their first step onto the property ladder.
The CBI’s ‘Unfreezing the Housing Market’ report also calls for new mortgages to be introduced, tailored to allow homeowners in negative equity to move house.
The report claims that although five million people are “languishing on waiting lists” property sales have plummeted since the recession.
It sets out a number of proposals to boost the housing market including introducing a “Mortgage Indemnity Guarantee” insurance scheme.
This insurance fund would protect lenders from defaults on mortgage payments, giving them the confidence to offer low-deposit mortgages to first-time buyers.
The CBI also wants planning rules to be relaxed to help stimulate the housing market.
It wants commercial premises to be able to be converted to houses without the need for planning permission and is also calling for a review of Stamp Duty in order to make it more progressive.
John Cridland, CBI Director-General, said: “Housing makes a significant direct contribution to economic output and job creation, and also has a big impact on business and consumer confidence and spending.”
There was some good news for first-time buyers today with recent research showing that the number of 90 per cent mortgages on the market has increased significantly in the last two years.
New figures from Moneyfacts show that 84 mortgages at 90 per cent loan-to-value are available at present, while some building societies, including Skipton, Melton Mowbray and Cambridge are offering 95 per cent mortgages.
CBI: Confidence among manufacturers slump
According to the Confederation of British Industry (CBI), confidence among UK manufacturing firms has slumped as a result of the debt crisis in the euro zone, as well as a fall in expectations for future growth.
The latest industrial trends survey by the employers’ group established that 30% more businesses were pessimistic about the future than optimistic, while companies expected a fall in orders, output and staff.
The combined order book for the companies surveyed dived to -18 in October from -9 the previous month – the lowest level for a year.
Furthermore, expectations for output in the next quarter slumped to -11 this month from +9 in September – the lowest level since July 2009.
The latest report has fuelled concern that the UK economy may be headed for a double-dip recession.
Commenting, Ian McCafferty, the CBI’s chief economic adviser, said: “Manufacturers saw modest growth in orders and production over the past quarter.
“However, sentiment has deteriorated sharply and firms expect sizeable falls in activity over the next three months. The quarterly fall in sentiment is the largest since the height of the recession in mid-2009.”
The figures are based on the CBI’s quarterly survey of industrial trends, which was conducted between 26 September and 12 October, and questioned almost 450 manufacturing firms.
CBI urges Government to boost housing market
The Confederation of British Industry (CBI) is calling on the Government to launch new initiatives to boost the ailing housing market, suggesting it could help economic growth.
The business lobby group wants Chancellor George Osborne to launch the fresh initiatives in his autumn statement, which will be delivered later this year.
In a speech to the CBI North-East Annual Dinner last night, John Cridland, director-general of the CBI, said: “Without a steady stream of eager first-time buyers the housing market stagnates and our whole economy suffers.”
Mr Cridland added: “A way of helping first-time buyers to access finance to get on the property ladder could be to allow them to access locked savings in their personal pension pots through a loan-back scheme.
“Members of company schemes could borrow money from their own pension pot at a low cost, paying the loan back through their salary at any time during their working life.”
Mr Cridland is calling on the Government to consider introducing a new Mortgage Indemnity Guarantee (MIG) scheme and more shared ownership schemes, in order for many to get onto the property ladder.
Cridland says: “Now is the time to stop the stagnation and get the housing market flowing again. The CBI wants to see a revitalised MIG, to reduce the risk of higher LTV mortgages.”
The UK housing market remains under pressure due to a lack of demand, unaffordability and a lack of mortgage products.
Mortgage approvals are picking up but are well below levels seen prior to the financial crisis.
First-time buyers have to put down an average deposit of 20% in order to secure a mortgage, according to the latest figures from the Council of Mortgage Lenders (CML).
The CML also said with house prices edging higher for the year to date, the average new mortgage has gone back up to £120,000, meaning affordability remains a major issue for first-time buyers and home-ownership becomes out of reach for many.
The CBI believes by boosting activity in the housing market, it could be a “game-changer” for economic growth.
Last month, the business group predicted the UK economy will grow by 1.3% this year, down from its previous forecast of 1.7%, made in May.
CBI urges Government to boost housing market
The Confederation of British Industry (CBI) is calling on the Government to launch new initiatives to boost the ailing housing market, suggesting it could help economic growth.
The business lobby group wants Chancellor George Osborne to launch the fresh initiatives in his autumn statement, which will be delivered later this year.
In a speech to the CBI North-East Annual Dinner last night, John Cridland, director-general of the CBI, said: “Without a steady stream of eager first-time buyers the housing market stagnates and our whole economy suffers.”
Mr Cridland added: “A way of helping first-time buyers to access finance to get on the property ladder could be to allow them to access locked savings in their personal pension pots through a loan-back scheme.
“Members of company schemes could borrow money from their own pension pot at a low cost, paying the loan back through their salary at any time during their working life.”
Mr Cridland is calling on the Government to consider introducing a new Mortgage Indemnity Guarantee (MIG) scheme and more shared ownership schemes, in order for many to get onto the property ladder.
Cridland says: “Now is the time to stop the stagnation and get the housing market flowing again. The CBI wants to see a revitalised MIG, to reduce the risk of higher LTV mortgages.”
The UK housing market remains under pressure due to a lack of demand, unaffordability and a lack of mortgage products.
Mortgage approvals are picking up but are well below levels seen prior to the financial crisis.
First-time buyers have to put down an average deposit of 20% in order to secure a mortgage, according to the latest figures from the Council of Mortgage Lenders (CML).
The CML also said with house prices edging higher for the year to date, the average new mortgage has gone back up to £120,000, meaning affordability remains a major issue for first-time buyers and home-ownership becomes out of reach for many.
The CBI believes by boosting activity in the housing market, it could be a “game-changer” for economic growth.
Last month, the business group predicted the UK economy will grow by 1.3% this year, down from its previous forecast of 1.7%, made in May.
CBI urges Government to boost housing market
The Confederation of British Industry (CBI) is calling on the Government to launch new initiatives to boost the ailing housing market, suggesting it could help economic growth.
The business lobby group wants Chancellor George Osborne to launch the fresh initiatives in his autumn statement, which will be delivered later this year.
In a speech to the CBI North-East Annual Dinner last night, John Cridland, director-general of the CBI, said: “Without a steady stream of eager first-time buyers the housing market stagnates and our whole economy suffers.”
Mr Cridland added: “A way of helping first-time buyers to access finance to get on the property ladder could be to allow them to access locked savings in their personal pension pots through a loan-back scheme.
“Members of company schemes could borrow money from their own pension pot at a low cost, paying the loan back through their salary at any time during their working life.”
Mr Cridland is calling on the Government to consider introducing a new Mortgage Indemnity Guarantee (MIG) scheme and more shared ownership schemes, in order for many to get onto the property ladder.
Cridland says: “Now is the time to stop the stagnation and get the housing market flowing again. The CBI wants to see a revitalised MIG, to reduce the risk of higher LTV mortgages.”
The UK housing market remains under pressure due to a lack of demand, unaffordability and a lack of mortgage products.
Mortgage approvals are picking up but are well below levels seen prior to the financial crisis.
First-time buyers have to put down an average deposit of 20% in order to secure a mortgage, according to the latest figures from the Council of Mortgage Lenders (CML).
The CML also said with house prices edging higher for the year to date, the average new mortgage has gone back up to £120,000, meaning affordability remains a major issue for first-time buyers and home-ownership becomes out of reach for many.
The CBI believes by boosting activity in the housing market, it could be a “game-changer” for economic growth.
Last month, the business group predicted the UK economy will grow by 1.3% this year, down from its previous forecast of 1.7%, made in May.