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Housing market 'needs more help' | Housing market 'needs more help' |
(1 day later) | |
The government needs to take "significant and decisive action" to help kick start the housing market, the main surveyors' organisation has said. | |
The call from the Royal Institution of Chartered Surveyors (RICS) came as it said its research showed that housing sales were now at a 30-year low. | The call from the Royal Institution of Chartered Surveyors (RICS) came as it said its research showed that housing sales were now at a 30-year low. |
Claiming that government efforts had so far been limited, RICS has come up with its own set of suggested reforms. | Claiming that government efforts had so far been limited, RICS has come up with its own set of suggested reforms. |
The government is working on a package of measures to help the housing market. | The government is working on a package of measures to help the housing market. |
No-one from the Department of Communities and Local Government was immediately available to comment on RICS' recommendations. | No-one from the Department of Communities and Local Government was immediately available to comment on RICS' recommendations. |
The RICS report comes a week after the Nationwide said house prices fell 10.5% in August compared with the same month last year. | The RICS report comes a week after the Nationwide said house prices fell 10.5% in August compared with the same month last year. |
More mortgages | More mortgages |
RICS is calling on the government to first help increase the number of available mortgages. | |
The market needs decisive government action on a range of fronts if it is to pull itself out of the doldrums Gillian CharlesworthRICS director of external affairs | The market needs decisive government action on a range of fronts if it is to pull itself out of the doldrums Gillian CharlesworthRICS director of external affairs |
To do this, RICS wants the government to allow the Bank of England to guarantee the issue of new mortgage-backed securities - home loans which are parcelled up and sold on to other investors. | To do this, RICS wants the government to allow the Bank of England to guarantee the issue of new mortgage-backed securities - home loans which are parcelled up and sold on to other investors. |
RICS says such a move would help increase the number of new mortgage offers available. | RICS says such a move would help increase the number of new mortgage offers available. |
The Bank of England currently does guarantee existing mortgage securities, under the Special Liquidity Scheme, but RICS wants it extended to new mortgage investments. | The Bank of England currently does guarantee existing mortgage securities, under the Special Liquidity Scheme, but RICS wants it extended to new mortgage investments. |
RICS also calls for the establishment of tax-free saving schemes to allow first-time buyers to more easily save for a deposit on their first property. | RICS also calls for the establishment of tax-free saving schemes to allow first-time buyers to more easily save for a deposit on their first property. |
Among other recommendations, it wants to see is a short-term holiday on stamp duty, followed by a new lower rate. | Among other recommendations, it wants to see is a short-term holiday on stamp duty, followed by a new lower rate. |
RICS also called for government-backed mortgage rescue schemes to allow the current occupiers to continue to live in their property. | RICS also called for government-backed mortgage rescue schemes to allow the current occupiers to continue to live in their property. |
No silver bullet | No silver bullet |
"The market needs decisive government action on a range of fronts if it is to pull itself out of the doldrums and we call on government to listen to the market's solutions to a whole set of problems," said RICS director of external affairs Gillian Charlesworth. | "The market needs decisive government action on a range of fronts if it is to pull itself out of the doldrums and we call on government to listen to the market's solutions to a whole set of problems," said RICS director of external affairs Gillian Charlesworth. |
"We know there is no silver bullet that will slay this monster, but we need a joined-up, comprehensive approach to bring back confidence and to give the public clarity about what is available. | "We know there is no silver bullet that will slay this monster, but we need a joined-up, comprehensive approach to bring back confidence and to give the public clarity about what is available. |
"While we wait for the government to act on all the necessary fronts, many home owners are trapped in a market offering little or no mobility without any prospect of good cheer in the autumn." | "While we wait for the government to act on all the necessary fronts, many home owners are trapped in a market offering little or no mobility without any prospect of good cheer in the autumn." |
RICS also calls for regulatory reform to make it easier for social landlords to develop and rent affordable homes, and reduced VAT (Value Added Tax) on repair and maintenance costs. | RICS also calls for regulatory reform to make it easier for social landlords to develop and rent affordable homes, and reduced VAT (Value Added Tax) on repair and maintenance costs. |
It further wants to see changes to the Home Information Pack to make it less costly. | It further wants to see changes to the Home Information Pack to make it less costly. |
The Conservatives described the RICS proposals as "serious options" which the government should consider. | |
The Liberal Democrats last week called for the introduction of a mortgage rescue scheme, which would allow families struggling with repayments to sell all or part of their house to a housing association or private firm and then stay in the property as tenants. | The Liberal Democrats last week called for the introduction of a mortgage rescue scheme, which would allow families struggling with repayments to sell all or part of their house to a housing association or private firm and then stay in the property as tenants. |
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