MPs support reforms to help people buy homes

MORE first-time buyers are expected to be helped onto the property ladder by building society reforms backed by MPs.

The Building Societies Act 1986 (Amendment) Bill has moved closer to becoming law after it received an unopposed third reading in the Commons yesterday.

The Government-backed Bill aims to modernise societies by expanding their lending capacity, with Labour insisting the changes would support “more working people to become homeowners”.

The proposed reforms were moved after a Government consultation considered how to allow building societies to “compete on a more level playing field with banks” and to promote competition within the financial services sector.

Sunderland Central Labour MP Julie Elliott, the Bill’s sponsor, said: “Whilst the housing sector has recovered significantly since the record low mortgage approvals during the Covid pandemic, and has recovered from the acute economic shock caused by the last Conservative administration, mortgage approvals at this time are still below that which we saw before the pandemic.

“That is why I think a Bill like this, which gives more choice to the building society sector to operate in the interests of their members, is a good thing.”

She said the sector had a “very strong record” in supporting firsttime buyers, noting every £10 billion of lending could support “an additional 20,000 mortgages”.

Conservative MP Peter Gibson highlighted support for the Bill from Darlington Building Society in his constituency, with the Commons hearing the reforms would help the sector “survive and thrive” by “cutting red tape” and removing “outdated bureaucratic governance systems not faced by the big banks”.

The Bill will undergo further scrutiny in the House of Lords at a later date.