Banks preventing home ownership: NAEA

Banks and building societies are preventing home ownership, according to a poll commissioned by the National Association of Estate Agents (NAEA).

The independent survey of 1,800 people found that 58% believed banks must begin lending more if the UK is to pull out of the property slump.

Almost a quarter of people said they were unable to find a mortgage that they qualified for anywhere in the market while 56% believed that a combination of relaxed restrictions and lower deposit requirements would increase the chance of them buying a property.

Peter Bolton King, chief executive of the NAEA, warned that banks risked stifling market recovery and that the Government should pressure them into lending.

He said: “We can not let the banks convince us that shutting up shop when it comes to mortgage lending is a responsible move. The decision to restrict mortgages so severely is rooted in self interest.

“The Government must do more to put pressure on those banks that are refusing to lend, while highlighting those banks that are easing restrictions to help get the economy moving again. It is time to accept that responsible lending to responsible people is necessary for the country.”