The Council of Mortgage Lenders welcomes the Government’s support for home-ownership announced by the Prime Minister as one of his six pledges for the forthcoming general election.
Following the announcement, the CML would urge the Government to take their pledges further.
It would like the Government to implement the five-year housing strategy recently announced by the Deputy Prime Minister.
The CML urges for reform of stamp duty, both by raising the 60,000 starting threshold and scrapping the current system whereby duty is levied at the highest marginal rate on the whole of the price of a property.
It would also urge the Government to provide the necessary support and initial funding for the launch of a public/private partnership to provide more equity loans.
Lastly it would like an overhaul of the benefits system to remove the bias against owner-occupation and bring home-owners on to a level footing with tenants.
CML director general Michael Coogan says:
“We are not surprised that the Prime Minister has put the economy and housing right at the top of his list of election pledges. Home-ownership gives people the greatest level of choice and autonomy over where they live. By giving people the chance to build housing equity on which they may be able to draw later, home-ownership has the potential to reduce the extent to which people rely on welfare. And it costs the Government much less to support a household in low-cost home-ownership than to provide subsidised rented housing.”