New government 'must help first-time buyers'

The new government, whatever its constitution, must take steps to help first-time buyers access cheaper mortgages, it has been claimed.

Paul Collins, editor of BuyAssociation.co.uk, said young professionals are the group most in need of support in the current financial environment.

"Without this stream of 'new blood' coming into the market, the rest of the property spectrum will eventually suffer," he stated.

Mr Collins called for changes to stamp duty and an assurance that the financial sector is committed to greater levels of lending.

He was speaking after the Association of Mortgage Intermediaries claimed the budget deficit will continue to increase the cost of mortgage lending.

The provision of mortgages is seen as imperative to the future of the UK property market, although movements will only become clear when the political parties have decided who is going to govern.

Mr Collins said: "The hung parliament will tend to lead to a high degree of uncertainty in the housing market, and could lead to a return to the inertia seen during the depths of the recession last year."

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2010-05-11 12:08:04 © Moneyextra.com