11th February 2009
Property investors stand to benefit from local authorities making a return to the mortgage market as their presence is likely to stimulate the private sector, it has been stated.

Local authorities in Manchester and Bristol among others could be offering mortgages to property investors in the near future and this could provoke increased lending, according to the New Local Government Network.

The independent thinktank, which made proposals to the government that paved the way for the public sector to be given a go ahead on the matter, says that the move may bring back confidence.

"I would hope that this provokes the private sector into beginning to lend and offer more products," said communications manager James Hulme.

"I hope that what it will do is give the private sector a bit more confidence to come back into the market and begin to offer a bit more liquidity into the market."

Local authorities were involved in mortgage lending in the past.



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