It is urging the Bank of England to allow more lenders access to its Special Liquidity Scheme, and also urging the Government to extend its mortgage rescue scheme and abolish the HIP system.
AMI also wants the chancellor to provide more support for small businesses via a freezing of corporation tax, the introduction of a business support fund and the postponement of the business rate review.
The body is also calling on the Government to do more to help first-time buyers by a wide review of stamp duty and the introduction of a tax free savings account to build up the capital needed for house deposits.
AMI policy director Andrew Strange says: “Many of our members are small and medium sized businesses. We believe it is imperative that support is offered to these firms. We would welcome a reduction in corporation tax and call for the business rate review to be postponed.
“We also believe HomeBuy Direct is an innovative scheme that can be of substantial benefit to the house building industry. But, we would like to see the Government open up the HomeBuy Direct scheme to include all properties, and also the remortgage market, which is the largest percentage of the mortgage market. We would also like to see the Government allocate more money to HomeBuy Direct than the £300 million already pledged.
“To help first-time buyers build up capital and meet the demand for larger deposits we recommend the introduction of a tax-free savings account run by National Savings and Investments. We’ve seen the success of ISAs as a savings vehicle – why not introduce a similar scheme specifically aimed at the housing market?
“We are also encouraging lenders to offer facilities to housing associations who offer shared ownership schemes. This would operate on a reverse basis, offering clients with substantial equity in their property the facility to borrow back percentages of the equity in their home at times of market difficulty, with the option to buy back these proportions when the market and borrowers’ circumstances improve.”