Partner Article

Housing market needs more support

Government measures aimed at giving the UK housing market a shot in the arm do not go far enough, according to some key players in the North East’s property sector.

In a bid to better support first-time buyers, Chancellor Alastair Darling this week axed stamp duty on homes under £250,000 in value.

The move will mean that nine out of ten people buying their first home will not be liable for the tax and it is hoped that it will breathe new life into the housing market.

North East housing giant Barratt Developments reacted positively to the news, with chief executive Mark Clare saying: “87% of our customers pay £250,000 or less for their homes.

“We are pleased that many of them will now have the opportunity to save thousands of pounds thanks to this measure which will help strengthen the housing market.”

However, according to some estate agents in the region, the measure will do little to build confidence in the sector.

Sarah Mains, co-owner and director of Tyneside-based Sarah Mains Residential said: “From a general point of view, there was nothing really in the budget that came as a surprise, and little that will affect the housing market in a positive way in the North East.”

“The re-introduction of a stamp duty holiday for first time buyers, even increased to £250,000, does little to help the market in our region.

“First time buyers in the North East need help in the form of mortgage lending levels, as most who aren’t buying simply can’t because they don’t have a 20% deposit and therefore can’t raise the funds from a lender to buy.

“Not many first time buyers in the North East could ever consider buying a property with a price tag much past £150,000, so the increased exempt level, while headline-grabbing, is actually a futile offering.”

Meanwhile Justin Anim, managing director of Pattinson Estate agents, said: “ I think the stamp duty thing is positive, but more needs to be done.

“I don’t think it’s a total panacea because we need banks to relax lending criteria a bit more really.”

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