Government Launches Rescue Plan For Housing Market
The Government has been promising some action to help the ailing housing and mortgage loan market for some time now and many people working within the industry have been eagerly awaiting the outcome with baited breath, whilst potential buyers have put their plans to buy a house on hold until they find out what new incentives the Government are likely to offer to encourage them to enter the market, thereby causing the housing market to stagnate yet further.
Yesterday, the Government finally announced a range of financial packages designed to revitalise the housing and mortgage loan market, by encouraging first time buyers to enter the market and also to protect those individuals who are struggling to keep up with the repayments on their mortgage or home loan.
Firstly, the Chancellor, Alistair Darling announced that the starting price for stamp duty would be raised from £125,000 to £175,000 on residential purchases, for a period of one year. Other announcements were made throughout the course of the day which included a reform of the income support system for mortgage interest payments, by raising the limit to £175,000 and shortening the waiting period to thirteen weeks from 39 weeks.
There will also be a £300 million shared equity scheme to help first time buyers get onto the housing ladder, a £200 million rescue package for those struggling with their mortgage or home loan repayments who may be facing repossession and a £400 million social housing package to help landlords and councils to provide more social housing.
Hazel Blears of the Department for Work and Pensions (DWP) said “We are giving a leg-up to first time buyers keen to own a place of their own. By bringing forward our investment in social housing, we are both getting more decent, affordable housing ready for people to live in sooner and helping the house building industry weather tough times.”
The Housing Minister, Caroline Flint said “The Government is determined to play its part and others must do the same. Lenders should be exhausting all avenues before repossessing, including looking at how they could extend mortgage rescue schemes to householders.”
