Robin King, director at Move with Us, the rperty specialist, reflects on today’s Budget

March 22, 2012 - PRLog -- “We welcome any incentives that are offered to first time buyers and the NewBuy and Right to Buy schemes may help to some extent, but yet again, the Chancellor has failed to address the core issues that are affecting young families from being able to move up the property ladder.

“It’s the Lenders that hold the keys to unlocking growth in the wider market. The government needs to make it easier on banks to lend and we are disappointed that the Chancellor has not tackled lending practices.  Banks are subject to capital adequacy restrictions that are totally inappropriate for the market and where it is in the current cycle. These restrictions, more than any other single measure, are artificially suppressing the number of transactions even further, which is obviously being felt in the wider UK economy.

Incentive schemes should be extended out to all home purchases, not just new homes
“The Government has extended the finance offered to construction companies building new homes and it is anticipated that this will deliver over 3,000 additional homes.  This will create more jobs and therefore we will see an increased demand for these types of properties with little more supply.  

“If the government wants to make a real difference to the property market, incentive schemes should be extended out to all home purchases.  As it stands, the NewBuy Guarantee scheme, which provides a mortgage indemnity facility, significantly reduces the deposit needed to buy a home by around 75% and for most people this will be the only way that they can get onto the property ladder.  If extended to all homes, the vendor could pay the 3.5% which is currently paid by the new home builder, into an account made available to the mortgage lender.

Budget just shifts Mansion tax burden to properties in London and the Home Counties
“It’s been a long time coming and it’s refreshing to see that the government has finally spotted the loophole and is taking steps to clamp down on tax evaders who have been trying to avoid paying stamp duty by hiding their assets in property shelters.  It’s too early to say how much extra revenue for the exchequer this will generate and it begs the question as to just how much those in the North will be affected by this as most £2 million properties are in the South.  

“The new Stamp Duty Land Tax rate for properties over £2 million, together with the already announced 5% tax on properties over £1 million will generate significant additional revenue for the exchequer.  The government should take these funds and look to reinvest in the property market, creating a much needed boost to get young families of Britain moving again.”

For further information, please contact:
Lianne Robinson / Chiara Barreca, Broadgate Mainland: movewithus@broadgatemainland.com / Tel. 020 7726 6111

About Move with Us:
•   We are one of the UK’s leading residential property experts, providing a broad range of simple and effective services to help consumers buy, sell and value their homes. Our aim is to do property, properly.
•   We provide free, impartial advice and tools to home buyers and sellers in the UK through our website and consumer helpline.
•   Founded in 1997, we have become one of the largest estate agency networks, with more than 1,100 estate agents in the UK, ensuring that we have access to the best local knowledge.
•   We work with the best independent, accredited estate agents across the country, providing property instructions and a host of moving services to help provide our customers with a smooth and efficient move.
•   Through our partner network, we manage more than 5,000 moves a year.
•   Based in Cambridgeshire, we have approximately 300 staff.
•   Our business growth has been recognised with a number of awards, including The Sunday Times Fast Track 100 award in 2005, 2006 and The Sunday Times Profit Track 100 award in 2008 and 2009.
•   For further information, please visit: http://www.movewithus.co.uk

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Founded in 1994, Broadgate Mainland is an award-winning company that specialises in financial services public relations.