Moneyfacts.co.uk urge Government to address housing issues

Permalink: Moneyfacts.co.uk urge Government to address housing issues
by Kay Murchie

Financial comparison website, Moneyfacts.co.uk, is calling on the Government to help homebuyers and address a range of housing concerns.

In its report titled ‘Tougher Times in the UK Residential Mortgage Market’ Moneyfacts.co.uk is asking the Government to revise the stamp duty threshold. In 2006, the minimum threshold was increased by £5,000 to £125,000, this was welcomed but has done little to relieve the issue for potential buyers.

Another issue is mortgages, since the credit squeeze, lenders have tightened their lending criteria. Many lenders have scrapped their 100% plus mortgage range, meaning first-time buyers have to find money for deposits, stamp duty, legal fees and furniture.

Andrew Hagger of Moneyfacts said our organisation is urging the Government to increase the stamp duty threshold to £200,000 or as an absolute minimum that borrowers should only pay duty on the margin above £125,000.

Without positive action from the government in this week‘s Budget, there is real danger that getting on to the property ladder will be nothing more than a dream for the vast majority of would be homeowners.

Moneyfacts is also requesting that the Government protect on long-term borrowing, to make it more flexible to real world situations.

While it is possible to insure against illness and unemployment, there is still the potential issue of marriage break-up which could result in a change of mortgage requirements, added Mr Hagger.

Moneyfacts hopes to see these innovations included in chancellor Alistair Darling’s first Budget, which takes place today.

Recently the National Association of Estate Agents (NAEA) requested that the Chancellor revise the stamp duty threshold in his first budget.

Figures show the Treasury made £6.4 billion from stamp duty last year.