Partner Article

Government must act on property market now

The recent downturn in the housing market has lead a national surveyors’ group to call on the government to make changes to help both buyers and sellers.

Research by RICS (Royal Institution of Chartered Surveyors) shows that housing sales are at their worst level for 30 years with Chartered Surveyor estate agents averaging just over one property sale a week in the three months to July.

RICS is proposing that the Government adopt a comprehensive set of measures which will both kick start the market now and significantly improve the consumer’s experience of buying, selling and occupying property in the future.

Michael Henning, RICS North East chairman, said: “The lack of mortgage finance has halted the entire market and these are very frustrating times for everyone working in the property industry.

“What’s most frustrating is that people in the region do still want to get on the property ladder and move home but are unable to secure lending. The downturn has already had a dire effect on the North East market with hundreds of people losing their jobs and we need to kick start the industry again now before any more damage is inflicted on the wider regional economy.”

The group has suggested that the Government establish a tax free savings account supported by Government contributions to help first time buyers save for a deposit. Other proposals include a reform of stamp duty, a complete overhaul of housing models, and making shared ownership more accessible.

RICS Director of External Affairs, Gillian Charlesworth said: “The market needs decisive Government action on a range of fronts if it is to pull itself out of the doldrums and we call on Government to listen to the market’s solutions to a whole set of problems.

“We know there is no silver bullet that will slay this monster but we need a joined-up, comprehensive approach to bring back confidence and to give the public clarity about what is available.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .