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BLOG: Is the Government listening to the construction industry?

Sir James Crosby was tasked by the Government to look at ways of reviving the ailing mortgage market.

The industry waited patiently for many months in the hope that recommendations would be made to kick start housebuilding again.

Barratt chief executive Mark Clare has said to me on a number of occasions how important he felt this report could be.

So what joy must have been felt among house builders across the land when Sir James finally unveiled his findings this week.

And the Government’s reaction… thanks for this Sir James, we’ll look at it later and get back to you.

The Government’s plan is to report back on Sir James’ recommendations in its full budget in the spring.

The Home Builders Federation is disappointed, to say the least, in the lack of a speedy response.

Sir James is calling for a temporary guarantee with taxpayer’s money on new mortgage loans in a bid to get the market moving again.

As the BBC said the number of mortgages approved for house purchases was down to 21,584 in October, 52 per cent lower than a year earlier.

And the Telegraph reported that new mortgage lending will fall below zero in 2009, with only slow growth in 2010.

With all of the house builders having to contend with falling sales and some nursing huge debts, the big question has to be, how long can they hang on and wait for the Government to act?