Bovis calls for government help on mortgages

By Matthew Scuffham

LONDON (Reuters) - Bovis Homes' (BVS.L) Chief Executive David Ritchie has called on the government to support the housing market by examining ways to unlock mortgage liquidity.

The government is considering various alternatives for assisting the market, particularly with respect to improving mortgage availability for first-time buyers.

"People need to be able to access finance to buy property and anything we can do to assist people getting on the housing ladder must be good," he told Reuters in a telephone interview.

"While cost saving measures, for instance a stamp duty holiday, would be very welcome and would allow the cost of moving house to be reduced, if you can't get a mortgage to support your transaction, you're not going to get off the starting blocks," Ritchie added.

He also said further interest rate cuts would "clearly be welcome".

Mortgage lenders are reportedly pushing the government to extend its special liquidity scheme to new mortgages.

The scheme offers gilts in return for bonds backed by residential mortgages made before 2008, which can be cashed to generate liquidity for struggling lenders.

Ritchie said he anticipates there will be a further erosion of average prices in the second half following a 4 percent fall in the first half and would not rule out land write-downs if prices fall significantly from current levels.