HBF tells government to cut rates or miss housing targets

The Home Builders Federation (HBF) has called for immediate cuts to interest rates to coax more homebuyers onto the market.

It wants the Monetary Policy Committee to cut interest rates by at least 0.5% to prevent a major downturn in the housing industry.

Without a rate cut, it says the government could have trouble meeting its housing targets.

HBF executive chairman Stewart Baseley said people wanted to buy houses but couldn’t because they were unable to access sufficient finance.

He said: “We are calling for this move now, as we believe more immediate action is needed to reduce the impact of a potential housing market downturn on the wider economy and on the Government’s ambitious housing targets.”

HBF believes an interest rate cut, allied to a £50bn special liquidity scheme package announced last month by the Bank of England, and more government intervention would restore lender and buyer confidence and get fluidity back in the housing market.