Throwing good money after bad

Published:

21/04/2009

Topic:

Press Release,Mortgages

Commenting on the expectation the Government will announce a £1bn boost for the housing market in tomorrow's budget, Louise Cuming, head of mortgages at moneysupermarket.com, said:

"Unfortunately this seems to be replaying a strategy that has not worked - billions of pounds have already been pumped into the housing market to little effect so why will this time be any different? The real problem is that only the chosen few - those with sizeable deposits - can get mortgages at the right price, and I doubt an extra £1bn intervention will change this. The Government needs to be careful about making this type of announcement as it raises expectations that mortgages and housing will become more available, and sadly that is unlikely."

Regarding the news that Chancellor Alistair Darling is set to extend the stamp duty 'holiday' on homes costing up to £175,000 by three months, to the end of the year, Louise added: "Whilst this will come 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." 

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