Two-thirds of brokers expect little from Osborne’s upcoming Budget

Two-thirds of brokers have no faith that the government will deliver the right type of new housing and mortgage initiatives in next week’s Budget.

Chancellor George Osborne will deliver his Budget next Wednesday and speculation ahead of the speech has centred on his plans for housing and mortgages.

David Cameron has also spoken of the need to offer help to young people trying to get onto the property ladder in recent weeks.

However, nearly two-thirds (64%) of respondents in the latest Mortgage Solutions People’s Poll said they did not have much faith in the government to deliver on these issues.

Just 36% backed the government to make changes that would boost the mortgage market and housing sector.

Writing in a blog for Mortgage Solutions, Bob Hunt, chief executive at Paradigm Mortgage Services, said that the government had a number of options and that housing must play a vital role in the Budget.

“Much as we all hope home finance takes centre stage on March 20th, house building itself needs to be afforded more thought and resources than it is presently.

“Consecutive governments have seemed happy to skirt round the issue before passing it on to their successors to deal with, but sooner or later some sort of long-term strategy needs to be determined.

“Many of the problems that exist in the mortgage and rental markets are the result of an undersupply of properties, so addressing this root cause would be just as beneficial as attempting to solve the indirect problems that are subsequently created.”

Council of Mortgage Lenders director-general Paul Smee added that the government needs to decide its targets carefully.

“My main plea is for the Chancellor to articulate very clearly what any proposals in his budget are designed to deliver,” he said.

“Is there a general economic objective of stimulating activity – in which case the emphasis should be on construction of new homes? Or is the desired primary objective to promote home ownership, with increased economic activity seen as a secondary by-product of that?

“The two objectives may be equally legitimate for government, but the means of attaining them are very different.”

Article courtesy of Mortgage Solutions

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