Peter Williams, executive director of IMLA, said: “We welcome all positive action from the government to offer support to first time buyers particularly affected by the credit crunch. But the government’s primary concern should be the drastic lack of liquidity in the market. Offering first time buyers ‘rent before you buy’ is a sticking plaster, not a long-term cure.
“The proposals put forward yesterday by the CML are welcome and need urgent attention. We also need an early report from Sir James Crosby on his assessment of the underlying problems in the mortgage market and their potential solutions. Key industry trade bodies and those in the wider finance sector must speak with one voice to put further momentum behind finding a package of solutions to kick start the mortgage market.
“Aside from government announcements, the reality is that economic circumstances are worsening on a daily basis. It’s imperative that the authorities act.”
David Bexon, managing director of SmartNewHomes.com, agreed: “While we welcome any attempt from the Government to tackle the long-term challenges facing the UK housing industry, it needs to be far bolder in its approach and introduce genuinely decisive proposals if it is to bolster what is currently a flagging market.
“I see little in these latest proposals that would work to inject any significant movement into the market in the short-term. While the rent-to-buy scheme will offer a good avenue into property ownership for some, it does little to get people buying and moving now. It is also only available to those deemed eligible under the Government’s criteria, and we need a solution to help many, not a few, enter the market. Developers are already offering a plethora of shared ownership schemes that work to get people onto the housing ladder with immediate effect. Scrapping stamp duty would alleviate a massive hurdle for these buyers.”
