Darling 'to boost property market'

Posted: 21 Apr 2009 13:02:46 GMT

Tomorrow's budget announcement is to include £1 billion of support for the housing market, it has been reported.

The chancellor, Alistair Darling, will provide a three-pronged support initiative for the market, reports say, aimed at supporting housebuilders and first-time buyers.

Included in the £1 billion package will be an extension of the stamp duty holiday, which offered relief from stamp duty for buyers of homes under £175,000.

Introduced in September last year, the holiday was criticised for not offering a high enough margin, but with a rising number of house prices now falling under the £175,000 threshold it may be that the scheme becomes increasingly valuable.

The plan also includes buying properties in projects postponed as a result of the recession and introducing a fund to increase the amount of social housing built in the UK.

Speaking before the budget reports appeared in today's newspapers Richard Diment, director general of the Federation of Master Builders, suggested that the measures may be supported.

"The facts speak for themselves. We have been under building for years. We need 223,000 new homes per year to keep up with demand but were only building 185,000 a year before the crash. Last year we built 80,000 and this figure will fall to 70,000 this year," he said.


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