Low-cost home-ownership is at a crossroads. Over more than 30 years, millions of householders have successfully become owner-occupiers at reduced cost. And at the recent general election, each of the main parties put forward ambitious low-cost home-ownership proposals. Now, however, the fiscal deficit looms large. And with the mortgage funding shortage persisting, the time is right for a frank debate on future provision of low-cost home-ownership. To what extent will the government be able to sustain existing commitments – or develop alternatives? Do larger lenders have the desire and capacity to provide increased funding? And are there particular opportunities for smaller, local lenders? Today, meanwhile, the FSA has published a crucial paper on responsible lending. The proposals may have some unwelcome side effects, making mortgages even harder to obtain for some borrowers while only delivering benefits at some unspecified time in the future. We recognise the inevitability of the drive towards regulatory reform, but urge the FSA also to reinforce responsible borrowing. Visit our website to read the latest issue of CML News & Views. Bernard Clarke Council of Mortgage Lenders tel: 020 7438 8923

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