The report calls on Government to introduce new measures to help consumers get onto the property ladder. The recommendations include a mix of tax incentives and targeted spending increases.
AMI believes the introduction of the following measures would create a more sustainable and buoyant mortgage market in the future:
Re-Invention of Mortgage Indemnity Guarantee
Abolition of Stamp Duty Land Tax
Re-introduction of Mortgage Interest Relief at Source
Introduction of a Tax Free Savings account, run by National Savings and Investments, to help those saving for a deposit
Abolition of Home Information Packs
Return of Real Estate Investment Trust with possible tax breaks
Robert Sinclair, Director of AMI, said: "The mortgage market has entered uncharted territory. With mortgage funding and consumer confidence reduced, the need for a targeted fiscal stimulus is required immediately. The confidence that once underpinned the mortgage market has been gradually destroyed.
"The mortgage market requires a concerted effort by Government to enable lenders to lend and borrowers to borrow. Without this intervention we risk losing the confidence of a whole set of people who will be denied the benefits enjoyed by previous generations.
"Many consumers are unsure of both the options available to them, and where to turn for true, independent advice. We believe the measures outlined in this paper will support consumers to become home owners."
The full paper is available here: http://www.a-m-i.org.uk/news/publications.php - Those who wish to respond are invited to do so by e-mailing [email protected].
