The Council of Mortgage Lenders (CML) has asked Chancellor Gordon Brown to consider a freeze on...
The Council of Mortgage Lenders (CML) has asked Chancellor Gordon Brown to consider a freeze on stamp duty in his Budget next Spring. The request was one of eight key policy initiatives the CML submitted to Gordon Brown regarding the housing market.
The CML argued that a sharp increase in stamp duty would damage consumer confidence at a time when it needs to be kept high. Instead the CML suggests the stamp duty threshold should rise in line with house price inflation.
Within the submission, the CML also calls for an early review of the timetable and rules for mortgage regulation, so that proposals for disclosing information by mortgage brokers are workable with no adverse effects on the development of mortgage securitisation.
Other proposals made by the CML, include a review to introduce a fairer system that creates fewer distortions in the market; reduced VAT on home improvements and repairs to provide an incentive to improve the quality of the UK's housing stock and an increase in spending on flood defences. The CML also wants to see a joint initiative by lenders, the Treasury and other Government departments to encourage the development of products allowing people to draw on wealth in their homes to provide an income in old age.
Peter Williams, Deputy Director General of the CML's commented: "A healthy housing market helps promote a flexible and adaptable economy, as well as making an important contribution to economic activity overall and to consumer confidence. Our proposals seek to enhance this potential and remove some of the barriers that the wrong sorts of policy initiatives can create."
Despite improved risk appetite
FOS award limit increase
Relates to 136 million transaction reports
Ceremony will take place 13 November