Pre-Budget Report
09 October 2007
Housing Finance review
Background
On 11th July 2007, the Chancellor announced that HM Treasury would lead a review on housing finance as set out in the Government's Housing Green Paper (Communities and Local Government website).
The Housing Finance Review will build on the recommendations of the Miles Review, taking account of subsequent developments in the mortgage markets. The Review will report at Budget 2008.
Terms of reference
As set out in the Housing Green Paper, the Review's Terms of Reference will include an assessment of:
- the supply of and demand for financial instruments to allow the risks of mortgage prepayments to be hedged efficiently. This will include an up to date assessment of whether the DMO could use 'swaptions' to manage better the Government's debt portfolio;
- the rapidly developing residential asset backed securities market, and assessing whether there are remaining obstacles or inefficiencies preventing further improvement in liquidity allowing securitisation to become a greater source of housing finance; and
- the recent financial innovations aimed at re-packaging housing and funding related risks which tend to be aimed at consumers on higher incomes, and assessing whether there may be important obstacles that prevent these opportunities from becoming more widely available.
Press Notices
Related documents
- Miles Review of the UK Mortgage Market
- Homes for the future: more affordable, more sustainable - Housing Green Paper (Communities and Local Government website)
- 2007 Pre-Budget Report: Chapter 6
- Housing Finance Review published alongside Budget 2008 (PDF 787KB)
Contact
To submit comments and views or for further information about the Review, please email or write to the following address:
Housing Finance Review
Macroeconomic Analysis Team
3/S1 HM Treasury
1 Horse Guards Road
London SW1A 2HQ
Email: HFRresponses@hm-treasury.x.gsi.gov.uk
Related Links
