The Bank of England is under fire for keeping rates on 95% mortgages high, penalizing young buyers according to the CEO of Berkeley Group, Rob Perrins. He argues that the Bank should reduce capital requirements for riskier mortgages to stimulate growth. Perrins believes that the current high rates on 95% mortgages hinder first-time buyers from affording a home.
He criticizes both the Labour and Tory manifestos for failing to address the issue, stating that government schemes do little to improve affordability or mitigate rising property prices. Perrins suggests that the Bank of England should equalize rates on mortgages regardless of deposit size to support prospective homebuyers.
Despite a drop in new home sales, Berkeley plans to launch a build-to-rent platform and develop 4,000 homes over the next decade. The construction industry faces challenges, with a 7.7% decrease in pre-tax profits for Berkeley. However, the company remains optimistic about future profitability.
Image Source: The Telegraph
\
[ad_2]
Source link