Peter Williams, executive director of IMLA, said the Chancellor faced a difficult task to prioritise spending due to the scarcity of funds and therefore welcomed the pledge for new housing alongside capital investment in science, transport and education.
He said: “House building has not kept up with rising demand in recent times and there is a pressing need for new, affordable housing to meet a shortfall that is estimated at around 100,000 homes.
“At the same time it was unfortunate that George Osborne’s statement was pre-empted by a opposition attack on the Funding for Lending Scheme. It is vital to remember the scheme is in its infancy and it will take time to see the full impact on the market emerge.”
Williams added: “With the Government committing up to £60 billion to the scheme we can still hold out hope that net lending to home owners will be increased by funds drawn down by the 35 banks and lenders who have signed up so far.”