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Govt criticised over new first-time buyer scheme
Posted by Francesca Witney
The government has taken a step in the wrong direction in its attempts to boost the UK's struggling property sector.
That is the opinion of Paul Holmes, chief executive officer of Firstrung, who has criticised the Conservative-Liberal Democrat alliance's approach to driving growth in this ailing industry.
Earlier this week (November 21st), prime minister David Cameron unveiled a new initiative to be led by the Council of Mortgage Lenders and the Home Builders Federation.
This will see the administration offer guarantees on as many as 100,000 mortgages on new build properties with loan-to-value rates of up to 95 per cent.
However, Mr Holmes believes this is merely a "complicated way of pumping activity in the housing market" and insisted that falling prices would provide first-time buyers with the biggest possible help.
"I am struggling to see the logic of a government supporting a scheme deliberately aimed at supporting house builders," he added.
24/11/2011 11:40
News category: Property