Jack Dromey MP, Labour's Shadow Housing Minister, responding to the Government’s announcement of a mortgage indemnity scheme, said:
“Under Labour, we helped one million to get a mortgage. Under the Tory-led Government, we have a mortgage market where people can't get mortgages. The average age of unassisted first-time buyers is predicted to rise to 44.
"That's why Labour first proposed a year ago action on mortgages and that's why many Labour councils from Hastings to Sunderland already operate successful schemes. Today's announcement is too little too late but at least it's something from a Government that has done virtually nothing to tackle the worst housing crisis in a generation.
“But there are questions to answer about this scheme. Why has the number of major lenders participating in the scheme fallen from seven to three and the number of builders from twenty-five to seven compared with when this scheme was originally announced?
“Reports have also suggested that few, if any, mortgage products will be available straight away and that the interest rates might not be attractive to would-be buyers.
“It would be absolutely wrong for the Government to raise the expectations of families and young couples only for them to find little choice and that they're unaffordable."