‘Rent before you buy' sticking plaster not a long-term cure

Commenting on the rent before buying proposals from the DCLG, Peter Williams, executive director of IMLA, said: "We welcome all positive action from the government to offer support to first time buyers particularly affected by the credit crunch. But the government's primary concern should be the drastic lack of liquidity in the market. Offering first time buyers ‘rent before you buy' is a sticking plaster, not a long-term cure.

"The proposals put forward yesterday by the CML are welcome and need urgent attention. We also need an early report from Sir James Crosby on his assessment of the underlying problems in the mortgage market and their potential solutions. Key industry trade bodies and those in the wider finance sector must speak with one voice to put further momentum behind finding a package of solutions to kick start the mortgage market.

"Aside from government announcements, the reality is that economic circumstances are worsening on a daily basis. It's imperative that the authorities act."