Mixed Reaction To Pre Budget Report
The Chancellor of the Exchequer, Alistair Darling, gave his pre budget report yesterday (Wednesday 9th December) and whilst some of his announcements were welcomed by the housing and home owner loan industries, other areas of change were not received as well, although few were surprised by the announcements.
The various trade bodies associated with the housing and home owner loan industries listened to the report with interest to see how the pre budget report is likely to help, or slow down recovery for those looking to buy a new house, or take out a new home owner loan or mortgage.
The Council of Mortgage Lenders (CML) welcomed the news that there would be no reduction in the level of government support for those borrowers who were struggling to keep up with the repayments on their home owner loans and mortgages. Income support and pension credit payments are currently helping more than 200,000 remain in their own home and without these payments, many would not be able to afford their loans.
But the CML said that it was disappointed at the Chancellor’s decision to end the recent stamp duty holiday, as this would make it more difficult for first time buyers in particular, to get a loan and buy their first house.
The National Association of Estate Agents (NAEA) were also disappointed at the stamp duty decision and called for government reform on the matter, as this would impact on property sales to first time buyers, as well as the home owner loan and mortgage industry.
Peter Bolton-King of the NAEA said “The Chancellor missed an open goal with his statement. By ignoring the advice of much of the property industry there is a real danger that the property slump which has hit thousands of families over the past twelve months will hit thousands more, harder, in the year ahead. As a first step the Chancellor should keep the stamp duty threshold as it is when the current holiday ends in December. More importantly, the government should commit to a complete reform of the tax to produce something that is fairer for everyone.”
