7
Feb
Darling offers reassurance on housing market
The housing market is more resilient than it was before the crash
of the 1990s, chancellor Alistair Darling claims.
Speaking at the EEF manufacturing body's biannual dinner, he noted
that some lenders were facing restrictions regarding the finance of
mortgages and suggested the government would act to protect the
wholesale mortgage market.
"We do not yet know the full effects of what has happened in the
financial markets," he said.
"But we do know that there are good reasons to believe that we will
get through this difficult time provided we do what is right for
the country."
He went on to describe British economy as flexible and open and
said unemployment levels were at a 30-year low.
The government intended to examine whether the introduction of a
new gold standard for covered bonds and mortgage-backed securities
would help the housing market and the wider economy.
Interest rates were cut in February from 5.5 per cent to 5.25 per
cent by the Bank of England.
