Wednesday March 12, 03:27 PM
UK Budget does little to help housing, mortgage market in short term - CML
LONDON (Thomson Financial) - The measures in the UK Budget presented today by Chancellor of the Exchequer Alistair Darling may provide benefits to the housing and mortgage market in the long term, but do little to alleviate immediate problems, the Council of Mortgage Lenders said.
CML welcomed announcements that the government will consult on housing finance to help the mortgage funding market, and that it did not commit to a 'gold standard' kitemark for covered bonds and mortgage-backed securities.
However, it said the 'modest announcements' on scrapping stamp duty on new shared equity schemes up to 80 pct of equity value are unlikely to provide any short-term relief to affordability and entry costs for first-time buyers to the housing market, where a stamp duty reprieve would have done so.
CML also criticised the lack of timescale on providing measures to tighten up requirements on sale-and-leaseback schemes, which is currently being reviewed by the Financial Services Authority and Office of Fair Trading.
'There was little of immediate concrete substance for the housing or mortgage markets in this Budget,' said Michael Coogan, director general of CML.
'While there may prove to be benefits in the long term, the Chancellor ducked the pressing nature of some of the issues that are facing the markets right here and now,' said Coogan.
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