Measurers to kick start the housing market

Yesterday the government announced measures to hopefully kick start the housing market. Remember time and time again it has been shown that you cannot buck the market, it has to find its own level, but sure you can encourage trends and try to engineer a soft landings.

In the face of record falls in new mortgage applications, falling house prices, house builders laying off staff and announcing write downs in their property banks, Enormous doom and gloom in the market,  the government have announced new measures to help (?)

The increase in the stamp duty threshold for 12 months may help, but will a 1% saving encourage you to buy in a market that’s falling and why oh why did the chancellor allow speculation on stamp duty to go on for so long ?

The interest free 5 year loans for certain qualifying first time buyers may help. (if you qualify)

The ability to sell all or part of you home to a housing association and rent it back may help.

What is really needed is a bit more confidence and realism.  People who rushed into buy to lets ignored the basic economics of the rents being able to cover the mortgage !

A home is where you live and not necessarily an investment ! the value of your home is only an issue when you want to sell it.

Prudent people will not have overstretched themselves to buy in the first place and should be able to afford there mortgages..

only time will show if these measures will help. until then the message has to be HANG ONTO YOUR HAT -WE ARE IN FOR A BUMPY RIDE !


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