Robert Sinclair, Director of AMI, said: "The extension of the Stamp Duty holiday is a sensible step but a bolder decision would have been to abolish Stamp Duty altogether. We really need more long term thinking to encourage buyers back into the housing market.
“The addition of the Asset-Backed Securities Guarantee Scheme will help inject much needed liquidity into the mortgage market. It should mean the market is better placed to respond to the increased buyer interest we are starting to see. This is a welcome albeit long overdue measure, which we first suggested over a year ago. The Government must now monitor this investment to see if it is sufficient, or if it needs to be extended beyond the October 2009 end date. It is disappointing that this is limited to triple-A rated securities only, as this will not assist lenders who specialise in dealing with customers who have had payment difficulties.
“We would have welcomed a re-invention of Mortgage Indemnity Guarantees to encourage lenders to offer higher loan to values (LTVs) above 70%, thus assisting both supply and demand in the mortgage market. It is disappointing the Chancellor overlooked this crucial measure in such an important Budget.
“The extensions to Mortgage Interest support and the additional funding for shared equity schemes will help some individuals, but not the wider mortgage market.”
