All sizzle, no sausage

Published:

22/04/2009

Topic:

Press Release

Commenting on the Government's limited regard to savings issues in the Budget: Kevin Mountford, head of savings at price comparison site moneysupermarket.com, said:

"I am relieved the Government has started to see sense regarding ISA limits - raising the total ISA limit to £10,200, of which £5,100 can be saved in the cash element. However, it is disappointing this will only be made available for those aged 50 or over this year. Everyone else will have to wait until next April. This doesn't seem fair given that all savers have been hit hard by the recent interest rate cuts and the Government should be encouraging people of all ages to save. 

"It comes as no surprise the Government hasn't come up with any sweeping initiatives to actually help the nation save. Regardless of the Government's short term focus on getting us to spend cash; we have to look after our futures - whether this is savings for a house deposit or looking after our retirement. A recent moneysupermarket.com poll showed that worryingly over a third of the nation has less saved now than two years ago¹, and 95 per cent of respondents on another poll² said the Government should be doing more to incentivise savings."

Commenting on the Government's announcements regarding the housing and mortgage market, Louise Cuming, head of mortgages at moneysupermarket.com, said: "Unfortunately this seems to be a case of déjà vu; billions of pounds have already been pumped into the housing market to little effect so why will this time be any different? Although figures out today from Revenue & Customs indicate there has been a slight jump in property sales, they are still at their lowest levels since the early 1970s, and figures from moneysupermarket.com indicate mortgage declines have increased by nearly 400 per cent in the past two years.

"The real problem is that only the chosen few - those with sizeable deposits - can get mortgages at the right price, and I doubt this intervention to guarantee mortgage backed securities will change this. The Government needs to make sure this cash boost creates results making housing more available to all, not just those with sizeable deposits, but sadly this is unlikely."

Regarding the news of an extension on stamp duty 'holiday' on homes costing up to £175,000 by three months, to the end of the year, Louise added: "Whilst this comes as a welcome respite for anyone looking to buy properties under the £175,000 threshold, it does not go far enough. The Government should extend the stamp duty holiday until the housing market fully recovers, and include properties up to a value of £250,000 at least." 

- ENDS -

Notes to editors:

¹ - Opinium Research carried out a poll of 1,994 British adults between March 3 and 5. Results have been weighted to nationally representative criteria.

² - 1026 people surveyed on moneysupermarket.com poll on March 26th 2009

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