Homeowners 'need tax incentives'
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Posted: 19th Nov 2008
The government needs to provide homeowners with tax breaks in order to inject new capital into the property market, builders have claimed.
The Federation of Master Builders (FMB) has indicated that a number of measures should be taken by the chancellor of the exchequer in his Pre-Budget Report in order to help the building industry.
In a list of ten recommendations for Alistair Darling, the FMB calls for a reform of stamp duty, a VAT reduction on repairs and maintenance work and encouragement to banks to lend more to small businesses.
Richard Diment, director-general of the FMB called for the government to "take radical action now".
"Current government proposals to kick start the building industry and the wider economy do not go far enough," he said.
"There is a growing crisis in the housing market with many first time buyers unable to get a mortgage let alone afford a first home."
The Halifax House Price Index found that hour prices fell by 2.2 per cent on October.
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