Monday September 1, 11:19 AM
How To Beat Property Market Slump
By Sky News
The Government needs to take "significant and decisive action" to kick start the housing market with a series of rescue measures and reforms, property experts have said. The Royal Institution of Chartered Surveyors (RICS) claimed ministers'
attempts to drag the the market out of the doldrums have been "limited".
RICS has put together a 15-point rescue plan of quick-fixes combined with long-term reforms of legislation.
The suggestions include a demand to suspend stamp duty holiday in the short-term.
Housing transactions have reportedly been hit following rumours the Government was considering temporarily halting the tax.
Mortgage rescue schemes should be offered to those facing repossession, allowing the current occupiers to continue to live there.
Ministers should also set up tax free saving schemes to allow people to save for a deposit on their first property, said RICS.
It comes as the Government is expected to unveil measures to help struggling homeowners and first-time buyers on Tuesday.
Initiatives are set to include improved support for people facing repossession and shared equity schemes for those trying to get on the property ladder.
Housing sales are at their worst level for 30 years with estate agents averaging just over one property sale a week in the three months to July.
Prices in England and Wales fell for the 11th month in a row during August as the property market downturn continued, new figures show.
The average home lost 0.9% of its value during the month, a slight moderation from the fall of 1.2% recorded during July, according to housing information group Hometrack.
Mortgage approvals were down to 33,000 in July, a 71% fall compared to a year ago.
RICS said improving liquidity in the market is crucial and urged the Government to issue new mortgage-backed securities - where home loans are parceled up and sold onto other investors - to allow the original lender to issue more mortgages.
The trade body wants the Bank of England to effectively guarantee these assets after they have been sold on until the market improves.
RICS' Gillian Charlesworth said: "While we wait for the Government to act on all the necessary fronts, many home owners are trapped in a market offering little or no mobility without any prospect of good cheer in the autumn."
A Communities and Local Government spokesman said: "We are looking at a wide range of options to further support the housing market in the current climate, working closely with industry and lenders."
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