Government 'should stay out of the property market'
Date posted: 30 Apr 2010
The government should do less to interfere with house prices, one commentator has said.
Published by Tim Hill.
The government should not try to prop up property prices and should instead let the housing market find its natural level, according to one firm providing advice for first-time buyers.
Paul Holmes, chief executive officer of Firstrung, said people should remember that the government has a significant stake in RBS and Lloyds Banking Group, meaning it has a vested interest in keeping house prices high.
Propping up property prices just makes them less affordable for first-time buyers who need them, commented Mr Holmes, adding: "They should just let market behaviour take care of the market place but they won't because they are petrified of house prices falling any further."
House prices rose by 0.2 per cent in April, according to the latest figures from Hometrack, while the supply of homes for sale is continuing to outstrip demand.
The findings also revealed that buyers are taking longer to commit to a purchase, with an increased number of viewings per sale.
Please contact Michaela Henson, Head of Property for further information or call 01223 225178.
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