The Home Builders Federation (HBF) has told the government that the housing market stimulus measures put in place in recent months, that have played such a significant part in the market stabilisation, must be extended.

In a range of meetings and a written submission, it has urged the Chancellor to use next week's Pre Budget Report (PBR) to extend packages such as HomeBuy Direct, Kickstart and the temporary increase in the stamp duty threshold to support the market - and reap the economic benefits.

-- Advertisement --

Stewart Baseley, Executive Chairman of the HBF, said: "House building is so important to the economy, both economically and socially, that the government simply must maintain its support. The stimulus measures introduced have played a significant part in the current market stabilisation and it is vital that just as we are seeing the first signs of a recovery, these stimuli are not removed either in total or in part. The past 18 months have seen an unprecedented drop in output, and so employment, and as long as the lack of mortgage availability remains a significant constraint on the market, such support measures are absolutely vital."

HBF has also urged the government to consider further steps to assist first time buyers, a key section of the market hit hardest by the reduction in mortgage availability, and to introduce a Mortgage Indemnity Guarantee scheme.

(CD/KMcA)