Questions raised in the House of Commons about the housing market following Brexit result

Thursday 14 July 2016

On 6 July 2016 Andrew Rosindell MP (Conservative, Romford) asked Chancellor George Osborne what steps he has taken to ensure stability in the housing market and increase the confidence of property developers since the EU referendum of 23 June 2016.

The Chief Secretary to the Treasury, Greg Hands MP, replied by saying that Ministers have met with house builders and industry leaders since the Referendum result to ensure stability. He added, “Britain’s economy is fundamentally strong. Markets have been volatile, but they have continued to function effectively. The Treasury, the Bank of England and the FCA are watching markets, including the housing market, extremely closely.”

Mr Hands explained, “Action by the government over the last seven years has substantially strengthened the resilience of the financial system. Capital requirements for the largest banks are now ten times higher than before the crisis. On 5th July the Chancellor announced that the Bank of England will use the new powers given to them by Government to help boost the lending capacity of the banks to our economy. UK's main lenders have agreed to make this extra capital available to support lending to UK businesses and households in this challenging time.”

He also said, “Government remains committed to boosting housing supply, including by delivering the most ambitious affordable house building programme since the 1970’s.”

A week is usually a long time in politics, but since the EU referendum there has been political change almost every hour. With the appointment of Prime Minister Theresa May, NAEA hopes that this will bring much needed stability and allow for the UK’s negotiations about its future with the European Union and the rest of the world to begin in earnest.