Billions Promised to Boost the Housing Market

The Chancellor Alistair Darling promised £20 billion in home loans to boost the housing market in the recent budget. A further £50 billion was pledged to guarantee loans between banks and to get credit moving. He said that the Government intends to encourage an increase in mortgage lending and that we should see an increase in the number of mortgage deals available.

The freeze on stamp duty for homes worth under £175,000 will continue until the end of the year. This should mean that 60% of homebuyers would not have to pay stamp duty. However the National Association of Estate Agents spokesperson said that this had been a missed opportunity to get rid of the tax all together.

Mr Darling also promised to extend the scheme to offer mortgage holidays to struggling homeowners facing repossession.

These measures should take us a step closer to improving the slump in the housing market.

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