The National Housing Federation (NHF) said the banking reforms, to be implemented in the new Parliamentary session, must stop lenders from unreasonably changing the terms and conditions of loans, an issue which is threatening the delivery of new social housing across the country.

However, the Federation also criticised the Government for not using the Queen's Speech to announce legislation to stop the big energy firms from overcharging the nation's six million prepayment meter customers.

The Federation says the banking reform, due to be implemented in the new Parliamentary session, must prevent lenders unreasonably imposing new terms on businesses.

Such a measure would safeguard the delivery of thousands of new social homes, as some lenders are making unreasonable changes to the terms of loans made to housing associations, meaning a number of associations may not be able to build as many new homes as planned.

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The NHF has also said that the reform of banking must help kick-start the mortgage markets, which have currently seized up, as this is preventing thousands of people from being able to buy affordable homes.

NHF Chief Executive Mr David Orr said: "New lending to homebuyers has all but dried up and this is quite simply preventing thousands of people from buying affordable homes, many of which are now simply lying vacant.

"Ministers must use the banking reforms to kick-start the mortgage markets and allow those who can afford to buy to be able to buy.

"The Government should also use the nationalised Northern Rock bank to provide mortgages for families who would like to buy a home under the low cost home ownership programme."

The Federation has expressed great disappointment that the Government has failed to use the Queen’s Speech to outlaw the overcharging of the nation's prepayment meter users – especially as the Prime Minister, Chancellor and Energy Secretary have all promised tough action.

Mr Orr said: "The Government has missed a big opportunity by not outlawing the overcharging of millions of prepayment meter customers in the Queen’s Speech.

"Millions of low income families on prepayment meters will be hugely disappointed that after so much talk, the Government has failed to act.

"This was open goal to score a major victory for justice and fairness and ministers have missed it."

(CD/JM)