Prime Minister meets with house builders at Number 10

Prime Minister Gordon Brown told house builders today that he is ready to look at more initiatives to spark new home starts and pull the industry out of its slump.

Recognising the impact of house building upon the entire economy, he insisted the government was trying to “encourage the mortgage market back into business” so that builders could return to work.

“We all recognise we are in exceptional times, that the financial system and the banking system has been in crisis for several months,” he said.

“We know how difficult the circumstances you face are. We recognise the importance of your industry and what you do and its impact on the whole of the economy…we’ve taken a number of initiatives in relation to housing but we are ready to look at more.”

Brown was speaking at a Downing Street meeting with industry leaders, including representatives from the Homes Builders Federation and the Federation of Master Builders (FMB).

FMB director-general Richard Diment said he urged the Prime Minister to provide more incentives to free up the mortgage market.

“The Prime Minister also listened to the need to cut VAT on repair and maintenance work to 5% and the benefits this will bring for home occupiers and the environment,” he said.

“It is encouraging that the Prime Minister is actively listening to our concerns and wants to meet again early next year to review progress.”