The Home Builders Federation (HBF) has welcomed the co-ordinated Government and Bank of England action to address the current economic uncertainties and bolster consumer confidence.

The Bank had acknowledged that there is no sign of inflation rising and so a Bank Rate cut was necessary and justified to boost the housing market and economy more generally.

The Government measures announced should bring stability to the financial system and increase confidence in the banking sector. But as the Chancellor stated whilst making the announcement, it has to result in an end to the current mortgage famine which is driving down housing transactions and weakening house prices.

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With the UK economy so heavily dependent upon a well-functioning housing market, these coordinated measures should have clear positive benefits for the wider economy.

Stewart Baseley, Executive Chairman of the HBF said: "The crisis in the world economy dictated that coordinated and decisive action was taken and we warmly welcome the announcements. I hope that the Chancellor will ensure that banks now start to restore mortgage lending to more normal levels and that he continues to work closely with the Bank to assess if further rate cuts are needed to support the economy."

(CD/JM)