Government aid package welcomed

A package of support aimed at providing banks with debt help and boosting confidence in the financial services industry has been hailed by bodies representing the mortgage and housing sectors.

Director general of the Council of Mortgage Lenders Michael Coogan welcomed the government aid that was unveiled by the Treasury yesterday.

He praised ministers for putting together a support package that is “sufficiently large in scale to have an impact on improving the flow of new lending”.

However, he added: “The devil will be in the detail and there will be a great deal to work through.”

Plans to protect banks’ assets and extend the government’s credit guarantee scheme were outlined in the announcement.

It is hoped the measures can boost the mortgage market and improve the flow of lending to consumers and businesses.

The Royal Institution of Chartered Surveyors also welcomed the plans, stating they could be an “important” first step towards boosting market conditions.

By Jamie Price