REGARDLESS of political orientation there is wide consensus that for the housing market to improve banks needs to start lending again.
The construction industry and the property market have always been at the forefront of any economic change. It seems to me that the road to recovery has to be kick-started once again with the construction industry and the property market. Sounds simple enough, but is it?
House builders need to barrow to build and banks resist the pressures to lend however there are some exiting new developments and discussions taking place at the government level.
Before we address that let’s consider once again the role of banks in the devastating recession we have been witnessing for the last five and half years.
No industry except banking has ever been immune from prosecution and accountability.
Of course, they were very sorry so they gave themselves big bonuses to make themselves feel better. No banker has ever been charged or punished for blatant wrong doing and deception.
For years our politicians have been slow to react with rage fearing exodus of our top bankers and financial institutions out of the country. (the so-called brain drain).
It has been refreshing to witness in the last few months, a sea change in approach by the politicians.
On Thursday, Prime Minister David Cameron said that bankers will be jailed if they recklessly endanger banks that having to be bailed out by the tax payer.
The recommendation he voiced was put forward by a 600 page parliamentary commission report. Let’s hope these measures will lead to a much needed reform in the banking sector and revive their responsible lending practices.
l Article written by Mike Cosy of Coseyhomes, trading as Cosey Rentals, chartered surveyor, civil engineer and bBuilding consultant.
Cosey Rentals is regulated by the RICS.