Call for mortgage guarantee scheme plus longer stamp duty holiday

The National Association of Estate Agents wants the government to initiate a mortgage guarantee scheme to encourage more 95 per cent loans, as well as an extension to the current stamp duty holiday.

In its submission to the government ahead of the Comprehensive Spending Review 2020, NAEA Propertymark makes a series of demands, based on recognising that more people now want larger homes and to take advantage of low interest rates, as they pursue moves in the light of the pandemic.

So Propertymark is calling for:

- A government-backed mortgage guarantee scheme which provides loans to borrowers of up to 95 per cent loan to value, thus allowing key workers to purchase homes with smaller deposits, and low deposit mortgages. “This will help more key workers to get onto the property ladder, ensuring they can live in high price areas and are provided with additional support in appreciation for their dedication to public safety during the Coronavirus pandemic” says the organisation;

- An extension to the stamp duty holiday, for at least another six months beyond its current March 2021 deadline. “Moving to a new home has enormous knock-on benefits for the wider economy and a continued holiday on property tax would increase consumer confidence and encourage both upsizing and downsizing” says the NAEA.

- Empty Homes Community Grants reintroduced via a £200m Empty Homes Fund. “By reducing the number of empty properties, communities can be regenerated in blighted areas, housing conditions can be improved, an increase in the Council Tax collection rate, and produce savings on temporary accommodation expenditure.”

On the rental side, ARLA Propertymark is calling for a review of all taxes relating to private landlords, financial support for renters hit by Coronavirus, and finally support for landlords to invest in their property and make energy-efficient home improvements.