Responding to Labour’s plans to ease the mortgage crisis, CPS Research Director Tom Clougherty said:
‘Labour’s plan mostly “requires” lenders to do a variety of things they will already be doing voluntarily, because they understand the pressures their customers are facing and don’t want people to lose their homes unavoidably.
‘But direct intervention of this sort can still have big unintended consequences. To the extent that it forces banks to offer greater cross-subsidies to particular customers, it is bound to raise costs for other borrowers – or prevent necessary adjustments in the mortgage market from taking place.
‘It is much better to leave banks to work things out with borrowers. A legislated, one-size-fits-all approach is bound to cause as many problems as it solves.’
ENDS
NOTES TO EDITORS
- Tom Clougherty is the CPS Research Director and Head of Tax.
- For further information, please contact Emma Revell on 07931 698246 or [email protected] or Josh Coupland on [email protected] or 07912 485655
- The Centre for Policy Studies is one of the oldest and most influential think tanks in Westminster. With a focus on taxation, economic growth, business, welfare, education, housing and green growth, its goal is to develop policies that widen enterprise, ownership and opportunity.
Date Added: Thursday 22nd June 2023
