Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she is taking to ensure mortgage availability for people wishing to purchase residential properties that were converted from office space.

The availability and pricing of mortgages is a commercial decision for firms in which the Government does not intervene.

However, the UK benefits from a competitive mortgage market; prospective buyers are encouraged to shop around and speak to a mortgage broker to find the best possible product for their circumstances.

We are also helping buyers who may struggle to save for a large deposit by delivering on our manifesto commitment to a permanent mortgage guarantee scheme. The scheme is permanently available and will help to ensure mortgages are available for first-time buyers and home movers with small deposits across the UK, supporting our mission to boost economic growth across the country and make sure people are better off.

More broadly, in response to the Prime Minister’s and Chancellor’s request for reforms to support growth, the Financial Conduct Authority have launched a major programme of work to refresh its mortgage lending rules, including to support first-time buyers’ access to mortgages. We welcome the actions that the Financial Conduct Authority have already taken as part of this work, including reminding firms of the flexibility available within the stress testing rules which allows lender to offer larger loans to customers, and its Discussion Paper, which is an important step towards putting home ownership within reach of many more.

The Government also welcomes the recent decision of the Financial Policy Committee of the Bank of England to reform the flow limit, enabling lenders to offer more mortgages at over 4.5 times buyers’ income - helping up to 36,000 more first-time buyers own their own home in the first year.