Warning over housing recovery - Mortgages - News - Moneyfacts


Warning over housing recovery

Warning over housing recovery

Category: Mortgages

Updated: 15/10/2009
First Published: 15/10/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Government has been warned it needs to extend the stamp duty holiday if it does not want to run the risk of damaging the recent recovery in the housing market.

As part of the Government's attempts to encourage people to move and revitalise a struggling property market, a temporary stamp duty threshold of £175,000 has been in place since September last year, up from the usual level of £125,000.

However, with the holiday set to come to a close at the end of 2009, the Home Builders Federation (HBF) believes it is possible much of the good that has been achieved could quickly be undone.

The chairman of the federation, Stewart Baseley, said it was vital that support is maintained for housing development in the Pre-Budget Report and also called for further assistance for first time buyers, along with an extension of the Homebuy Direct and Kickstart schemes.

The recent problems in the housing and mortgage markets have hit first time buyers hard. Although property prices have fallen, finance in the form of first time buyer mortgages has become hard to come by.

"If I have one big message for Government, it is a plea not to withdraw incentives, as I fear to do so would potentially slow the market just as it is beginning to show signs of recovery," Baseley added.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Londoners could be saving for a century to buy

We all know how expensive property can be in London and how tricky it is to get on the ladder, but the figures could still come as a shock, with a study finding it could take more than a century for the typical Londoner to save a deposit.

85% of remortgagors benefit from lower rates

Mortgage rates are among the lowest ever recorded, and in the case of fixed rates, they just keep falling! This means it’s never been cheaper to fix your mortgage rate for the long term, and unsurprisingly, remortgagors are taking advantage.

Does your mortgage lender owe you money?

Earlier this week, the financial watchdog revealed that hundreds of thousands of mortgage holders could have been overcharged by their lender. Are you one of the many who could be in line for a windfall?