Property professionals urge government to support market revival

Posted under General by Jermaine

The professionals of the Royal Institution of Chartered Surveyors (RICS) have urged the Government to help the housing market with rescue packages and reforms in order to pull it out from the worsening condition.

RICS opined that Government’s efforts in reviving the market have been inadequate. It was time to take significant and decisive actions, with long-term reforms in the property related legislation.

The Government is likely to announce measures in next few days which may include improved support on repossession and introduction of shared equity schemes for the first-time buyers.
According to the research reports, housing sales have reached their 30 years’ worst level, wherein an estate agent could sell just one property per week during last three months.

RICS wants the Government to issue mortgage-backed securities with a provision to sell home loans to other investors while allowing the original lender to issue additional mortgages. It also wants the Bank of England to guarantee those assets after the sell, until revival of the market.

RICS, in its 15-point rescue plan has urged the Government to introduce a holiday for short-term stamp duty and to float tax free saving schemes to enable people save money for their first property deposit.

The Government is likely to allow purchase of unsold homes to the housing associations in the open market and expansion of shared equity schemes.