Tue, January 21, 2025
Mon, January 20, 2025
Sun, January 19, 2025
Sat, January 18, 2025
Fri, January 17, 2025
Thu, January 16, 2025
[ Thu, Jan 16th ] - MSN
Opening Bell: 1.15.25
Wed, January 15, 2025
Tue, January 14, 2025
Mon, January 13, 2025

Should mortgage lending rules be relaxed to boost the UK economy?


//business-finance.news-articles.net/content/202 .. ng-rules-be-relaxed-to-boost-the-uk-economy.html
Published in Business and Finance on by MoneyWeek   Print publication without navigation

Chancellor Rachel Reeves has been seeking ideas from financial regulators on how to boost the economy amid concerns about the UK's prospects due to higher taxes announced in the Autumn Budget. It comes as UK GDP came in at just 0.1% for November.

The article from MoneyWeek discusses how changes in mortgage lending rules could potentially boost the UK economy. It highlights that the current stringent affordability tests, introduced after the 2008 financial crisis, have made it difficult for many to secure mortgages, thereby dampening the housing market and broader economic activity. The piece suggests that relaxing these rules could increase consumer spending, stimulate the construction industry, and enhance economic growth. However, it also warns of the risks involved, such as potential increases in household debt and the possibility of another housing bubble. The article references a report by the London School of Economics which argues that a slight relaxation could be beneficial if managed carefully, balancing economic growth with financial stability.

Read the Full MoneyWeek Article at:
[ https://moneyweek.com/personal-finance/mortgages/mortgage-lending-rules-affordability-boost-economy ]

Publication Contributing Sources