Bank Lending to the Public Down in the Q3
30 September 2009
Britain's banks have owned up to having
reduced the amount of mortgages and other forms of credit that they offer the public in the third quarter of the year.
This is despite them promising the Bank of England and the government that they would make more credit available to the public.
This comes despite the fact that there is a rise in demand for credit items such as mortgages.
The International Monetary Fund has warned that this lack of available credit is a key factor in the ability of the UK economy to rally in this time of credit uncertainty.
There are opposing statements from estate agents and banks. Estate agents are saying that the banks are scuppering deals by under valuing properties ensuring that sales cannot go through.
Banks on the other hand have said to the Bank of England that they have increased the number of loans being approved .
However figures from the Bank of England show that after several months of rises in new mortgage applications, August has seen a downfall of mortgages being approved.
The improved economic conditions have also meant default rates on mortgages have been less than expected in the third quarter. Another sign of the rallying economy however lenders are still not totally confident and expect them to rise slightly in the next three months.
This mixed message has had a mixture of reactions from people in the industry.
There is concern that banks are not doing enough to ensure that the market is back on track but the increase of lending over the last few months is seen as a hopeful sign.
In fact for the coming three months, lenders expect credit availability to improve for both households and firms and for mortgage lending, banks have cited a brighter economic outlook and rising house prices.
Will Homeowners Get Behind A Windows Scrappage Scheme?
16 September 2009
The Glass and Glazing Federation have launched a petition calling on the government to introduce a scrappage scheme as subsidy to new double glazing in UK homes.
Just one week ago top executives from the car industry met with the Business Secretary, Lord Mandelson, to call for an extension to the UK's car scrappage scheme beyond its current £300m budget.
But now it is the turn of an industry that has been largely left to fend for itself during the downturn to make its claim on the public purse.
The Glass and Glazing Federation (GGF) have launched a petition through Downing Street's official website to ask for a scrappage scheme to be extended into the glazing industry.
The view that the double glazing and window industry is worthy of government support is not a new one. Indeed, since May of this year commentators from both inside and outside of this industry have noted that subsidy would not just support the employment base of the industry, but also promote the purchase of a product that would help the government meet its obligation to cut emissions; properly installed energy efficient double glazing.
A similar justification was given by motoring executives earlier this year, when they argued that a scrappage scheme for cars would provide the financial motivation people needed to trade older, less fuel efficient and more polluting vehicals for newer ones.
The implementation of a fully fledge scrappage scheme for the double glazing industry would certainly show a deeper commitment to helping homeowners lower their property's carbon footprint than news of low interest loans for homes that make energy efficient home improvements.
It will be interesting to see whether the GGF's petition can engage homeowners into getting behind their campaign, or if support will only come from within the industry itself.
The GGF initially need 500 signatures on their petition for it to advance. If you want to make your voice heard, simply visit:
petitions.number10.gov.uk