By Marcus Leach

The Confederation of British Industry (CBI) has urged the government to boost activity in the UK housing market, believing it could have a huge impact on economic growth.

CBI director general John Cridland suggested employees should be allowed to borrow from their pensions.

"Without a steady stream of eager first-time buyers the housing market stagnates and our whole economy suffers," he said.

"Another way of helping first-time buyers to access finance to get on the property ladder could be to allow them to access locked savings in their personal pension pots through a loan-back scheme.

"Members of company schemes could borrow money from their own pension pot at a low cost, paying the loan back through their salary at any time during their working life."

He went on to say that the government could do more to boost investment on infrastructure.

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