Jonathan Rolande: The Government can no longer ignore...

The National Association of Property Buyers’ Jonathan Rolande gives his take on a manic week for the property market.

This is the week when everything changed.

Usually, after an interest rate rise there are a few hours of commentary from financial experts on TV and radio warning about the impact it will have on the property sector.

But pretty much ever since Thursday’s Bank of England announcement there has been blanket coverage across the media about the difficulties which lie ahead for those trying to pay their mortgage.

It is no exaggeration to say that there are going to be millions of people across the UK now worrying about how they will afford to maintain the roof over their head.

In such circumstances it is hard to find many positives. But one thing we should cling on to is the fact that this topic now appears to finally be front and centre of British politics.

Yes, it’s not for the reasons we’d all like to see. It’s not because we are seeing a roll out of an aggressive house-building plan which will solve the property shortage.

It’s not because of a set of brilliant policies that will allow first time buyers to find and buy a home. It’s not because of a rabbit-out-of-the-hat announcement which solves the crisis we are seeing within the rental sector.

But, nevertheless, the Prime Minister and Chancellor now see they can simply no longer ignore the property sector and the crisis which has been building for months.

That’s why Jeremy Hunt met banks and building societies in Westminster on Friday who, I am pleased to see, are offering more flexibility to struggling mortgage-holders struggling with the soaring rates soar.

According to reports, borrowers will be able to make a temporary change to their mortgage terms, then will be able to return to their original deal within six months.

This would allow some to have lower repayments for a short time, by just paying the interest on the home loan.

Hunt said the temporary flexibility on switching terms would not affect credit scores.

It’s worth remembering though that it will still be the case that missing payments or taking a total break on payments, known as a mortgage holiday, will still harm someone's ability to borrow in the future.

Lenders have also agreed to a 12-month delay before taking repossession proceedings against borrowers unable, or unwilling, to pay over the long term.

Bankers described the meeting as “productive” and these measures will definitely help reduce a lot of the tension that’s out there.

But there will still be an overwhelming sense of fear. Labour have been quick to try and offer solutions. They’ve issued a five point plan which would ease what it called "the Tory mortgage penalty" and help limit repossessions.

Labour said the typical British household was paying £1,000 more in mortgage payments than neighbours in Germany, France, the Netherlands and Ireland. No great surprise there.

In recent days both Hunt and Prime Minister Rishi Sunak have dismissed suggestions that the Government should step in, arguing providing support for borrowers could undermine the Bank of England's battle against inflation.

At the moment I’d agree. The Government picking up the tab simply isn’t sustainable.

That would be a sticking plaster on a gaping wound which needs major surgery.

What angers me more than anything right now about our political leaders is the fact they are only preparing to perform that surgery as the market enters life support.

These policies and ideas should have been in place years ago.

The property sector will come through this. It’s survived darker days and bigger challenges.

But it’s been badly let down, again, by politicians who have repeatedly failed to see the reality of the sickening property crisis - and deliver the medicine to help fix it. You’d have hoped for more from a former Health Secretary.