In the survey of its members, just over half of the members responding (53%) indicated they had little confidence in the government’s housing policy, while 42% said they did. However, very few lenders (2%) felt government policy was one of the key issues facing them, with competition mentioned most frequently - by 25% of respondents - credit issues by 18%, and business volumes by 15%.
Peter Williams, executive director of IMLA, said: “There is scepticism among lenders regarding the government’s ambitions regarding affordable homes and support for the provision of long term fixed rate loans. Generally lenders believe that the market, and not the government, can best provide for people’s housing needs. After the HIPs debacle, it is not surprising that there is an element is cynicism.”
Indeed, a significant minority of respondents to the survey (35%) believe that the imminent introduction of HIPs led to an increase in the number of properties coming onto the market, while 15% consider that HIPS led to a decline in the number of property sales.
Furthermore, more than half of IMLA’s members believed that thegGovernment’s objective was to kill off HIPs – and just 16% said it was not.
Williams said: “Before HIPs were launched on 1 August, many lenders were convinced that there would be another government u-turn, along the lines of the one on SIPPs, and that HIPs would die a death. The watered-down launch of HIPs covering just four bedroom properties gave no cause for greater confidence. Even with the announced extension to three bedrooms, there remains little certainty among the lending community that HIPS are here to stay.
“All in all, IMLA members seem to eye the Brown government with a degree of suspicion.”
