Housing reforms slammed by lobby group

The government’s reforms for the property market have been criticised by a lobby group.

Katy John, from the PricedOut organisation that campaigns for more affordable housing, described the changes as a “sticky plaster” that fails to address real problems.

“Why has Gordon Brown introduced a series of measures to prop up a volatile, unsustainable market?” she commented.

She discouraged first-time buyers from taking up the new schemes and urged ministers to tackle debt-related issues such as irresponsible lending.

It would be better for the government to focus on regulating mortgage lending and building more homes, she added.

A new scheme called HomeBuy Direct has been introduced to help up to 10,000 first-time buyers onto the property ladder.

Those with a household income of under £60,000 can get an equity loan of up to 30 per cent of the value of their home.

By Jamie Price