The Council of Mortgage Lenders says the Budget will do little to improve what it predicts will be a “challenging” year for the housing market.
Chancellor George Osborne announced a £250m Government-backed shared equity scheme in association with homebuilders, providing borrowers with a low-cost loan covering up to 20 per cent of the mortgage.
Osborne set out a reform to stamp duty land tax for bulk purchases where the rate is calculated on the mean value of the dwelling rather than the average value.
He also extended the support for the mortgage interest scheme a further year to January 2012.
CML chief economist Bob Pannell says: “Chancellor Osborne has adhered closely to the fiscal script set out in his first Budget. The indirect tax announcements will mar- ginally soften the impact of significant fiscal cuts for household finance but do not alter our forecast of a challenging year for households and the housing market this year.”
London & Country head of communications David Hollingworth says: “None of these measures will change things overnight. It is a case of some help for some people.”