Homeowners 'need government support'

The upcoming 'emergency' Budget represents an opportunity for the government to prioritise support for home-owners, it has been claimed.

Michael Coogan, director general of the Council of Mortgage Lenders, said there is a continued shortage of mortgage funding and weak consumer confidence - both of which are impacting on overall demand in the property market.

He urged the government to take positive action to stimulate the market, but acknowledged that the current fiscal position "leaves only limited room for manoeuvre".

"So far this year, house purchase activity has been lower than in the last half of 2009, although this reflects the stamp duty holiday, which boosted activity towards the end of last year and caused the quiet start to 2010," Mr Coogan commented.

"And although lower interest rates are benefitting borrowers, they are removing the incentive to remortgage."

Last month, the council reported that gross mortgage lending declined to an estimated £10.2 billion in April, down 12 per cent from £11.6 billion.

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2010-06-09 13:41:50 © Moneyextra.com