ABSTRACT
Developers proposing to work up building land in the London suburbs of the period had little trouble in securing short-term credit from a bank. Small builders could also get help with finance from developers selling off plots, and some building societies were willing to provide money for development. Some were over-ambitious, extending their risk by developing too many estates at the same time, accumulating liabilities until they were unable to repay money borrowed at high rates of interest. The 1925 act also allowed local authorities to lend money to people unable to find the initial down payment required by the building societies, and to guarantee payments to be made to building societies by purchasers. Builders found that the Pool boosted sales, although it locked up a large part of their profit, whilst they were relieving the society of all risk during the period of the guarantee.
