Flaws in recent housing market rescue measures announced by the government have been highlighted by a bankruptcy organisation.
Spokesman for The UK Insolvency Helpline Ian Boden-Smyth said that while the reforms were appreciated, they will not help people onto the property ladder.
“The stamp duty exemption is not much help in a falling market. It’s going to help current owners but not first-time buyers,” he commented.
He claimed that growing families need more help in moving to a bigger home, rather than those “who just want space”.
Although the government is trying to be helpful it’s the private sector “who are the problem”, he added, pointing out that lenders have withdrawn many products that were beneficial to those with bad credit.
In July, gross mortgage lending was down 27 per cent compared to the same period a year before, according to the Council of Mortgage Lenders.
By Jamie Price