Prospects for the UK property sector
There was much attention focused on the UK property sector yesterday with hopes that the government would step forward with significant assistance and significant financial help for this vital area of the UK economy. As it happens Alistair Darling confirmed that the stamp duty holiday on properties with a value of under £175,000 was to be extended until the end of 2009 along with significant investment into the UK mortgage sector.
As we covered just a few days ago, the UK government recently received clearance from the EU regarding a security backed mortgage liquidity arrangement which will see a significant increase in mortgage funding in the UK. There was also the announcement of a £500 million fund to re-energise the housing market and allow projects which had been mothballed because of the recession to come back online. We also saw £50 million put aside for the modernisation of armed forces properties and a further £100 million targeted at energy efficient homes of the future.
While there is no doubt that progress has been made in the UK mortgage market of late, many believe that more could have been done by the Chancellor to increase confidence, investment and support for a sector which has been in freefall for some time. There is a growing view that the UK authorities will continue to drip feed "good news" into the UK property market over the weeks and months ahead in the run-up to the general election.
Share this..
Related stories
EU partners agree €200 billion fiscal stimulus package
Despite the severe criticism of Gordon Brown's blueprint for the EU economic recovery, all parties have today signed a €200 billion fiscal stimulus agreement which will see serious investment across the EU in order to try and avoid a deep recession. The last few days have shown how fragile the EU is at the moment with much infighting, the German attack on Gordon Brown was both unprovoked and...
Read MoreIs UK bank lending reflecting the UK economy?
There has been much talk and much criticism of the UK banking industry with regards to "lacklustre" lending levels to small and medium-size businesses. However, in many ways the lending patterns of UK banks are currently reflecting the very difficult UK economic environment at the moment with the potential for further problems in the future. So are the banks right to hold back on further lending?...
Read MoreECB rejects calls to reintroduce liquidity program
The European Central Bank (ECB) has today rejected calls to reintroduce its liquidity program which had proved very successful in helping European companies raise funding on the money markets. In doing so Jean-Claude Trichet also reiterated his opinion that investors are becoming too pessimistic about the European economy and there is no need to question the prospects for the European economy as a...
Read MoreLIBOR rate falls to 4.49%
The vital LIBOR rate has fallen 1.1 percentage points to 4.49% since the Bank of England reduced interest rates which has breathed new life into the money markets. Even though the fall of 1.1% is less than the 1.5% reduction in interest rates this is very much welcomed by the financial community which has seen borrowing costs increase massively over the last 12 months. However, some experts are su...
Read MoreBritish jobs for British workers?
News that there has been a significant increase in immigrant workers claiming benefits in the UK has again cast doubts on Gordon Brown's claim to secure "British jobs for British workers". This was one of the government's major strategies at the last Labour Party conference when the government was under severe pressure from the rampant Tory party. However, while the infamous quote from Gordon Brow...
Read More