Andy Frankish, Mortgage Advice Bureau, comments on the growth in affordable housing

Andy Frankish, New Homes Director at Mortgage Advice Bureau (MAB), comments on today’s DCLG figures on affordable housing:

“The growth of affordable home starts is clearly welcome news, but as with every new set of figures on house building, it serves to highlight the sprawling gulf between demand and supply. The government has done much that is positive to bring the construction sector back to life, but the scale of the problem means it is not one that can be fixed over the course of a single parliament.

“It is impossible to overstate the vital role of affordable housing in the UK property market. Rising house prices carry deposit requirements with them, which spells trouble for many aspiring homeowners who increasingly see their hopes of getting on the housing ladder lifted out of reach.

“MAB’s own data shows that rising house prices have contributed to a 15% rise in the average purchase deposit over the last year, so the need for affordable options is plain to see. Housing supply can’t simply be switched on overnight, but the general upwards momentum shows that a strong commitment can produce change.

“With party conference season approaching and election manifestos to write, it is essential to work towards consensus on long term measures on planning, development and construction to make a full housing recovery attainable.”

Mortgage Advice Bureau (MAB) and That Mortgage Place (TMP) have today agreed a deal that will see MAB merge its affordable housing business, Sherwins, with one of the biggest and most innovative competitors, That Mortgage Place. This merge will see the two largest companies in the affordable housing sector come together to form TMP Sherwins.