N※N

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

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 ]