Budget 2011: The housing industry response

The housing trade bodies have given their response to the key announcements outlined by the Chancellor George Osborne in the Budget today.

FirstBuy Direct Scheme

Intermediary Mortgage Lenders Association (IMLA): “The government must see FirstBuy Direct as one of a number of mechanisms to help the mortgage and housing market because it will have little impact in isolation.

“We would like to see this scheme used hand-in-hand with other initiatives, such as a review of the Stamp Duty threshold.”

The British Property Federation (BPF): "This package broadly makes sense, because it targets home deposits, and is about as much as the government could realistically do in current circumstances.

"We would like to have a seen a refined policy which targets such aid at homes yet to built or completed, rather than a means of house builders selling unsold stock."

The Royal Institution of Chartered Surveyors (RICS): "Although this is not a solution to all housing problems this could represent the first step towards a vibrant and sustainable property market and assist the economy recovery."

Stamp Duty and tax

British Property Federation (BPF): “Stamp Duty charged on residential properties will be an important boost for the private rented sector and we hope will tip the balance in encouraging institutional funds into building homes. Using the average price is fairer and a welcome measure of support for those in need of rented housing."

The Council of Mortgage Lenders (CML): "Today's indirect tax announcements will marginally soften the impact of significant fiscal cuts for household finances, but do not alter our forecast of a challenging year for households and the housing market this year."

Support for Mortgage Interest (SMI)

The Building Societies Association (BSA): "The 12-month extension of the temporary changes to the eligibility criteria for SMI is a sensible one. SMI provides an effective alternative to other government support for struggling homeowners. 

"However, we believe an overhaul of SMI could make a significant difference to borrowers in financial difficulty, without significantly increasing the cost to the taxpayer."

The National Landlords Association (NLA) said: "The stamp duty concessions on bulk purchases will encourage landlords to invest more in residential property, thus providing much needed housing in the private rented sector."

Employment

The Federation of Small Businesses (FSB): “The government has committed to cutting red tape, but we believe new employment laws will still come into force in this year, which could hinder businesses from taking on staff.

“The biggest opportunity missing from this Budget is by not extending the National Insurance Contributions holiday nationwide to existing businesses, which would really have provided incentives for small firms to take on more staff."