Tuesday, March 12, 2013

Sustainable key market for the economy

Government launches insurance scheme NewBuy YESTERDAY, designed to give potential homebuyers access to mortgage even if they only have a 5% deposit.

The unfreezing the housing market is a big game-changer on the way to economic growth, which is why we call on the government to support home buyers by allowing them to take on low deposit mortgage.

CBI put forward the idea of ​​returning government-backed compensation scheme in the autumn.

Housing is an important part of the national infrastructure in the UK and is an important part of our economy. Not only makes a significant direct contribution to economic output and job creation, but also have a direct impact on consumer confidence and spending.

Serious challenges facing a cyclical and structural. Recent decline in housing activity to intensify breakfast decline, accounting for about a third of the overall 6% drop in GDP during the next recession and will drag on the recovery.

However, this problem is directly supported by and is in fact a symptom of a larger problem structure, resulting from a chronic shortage of housing supply relative to demand.

This is a major factor in creating successive bubbles in house prices has serious implications for the long-term affordability of housing in the UK.

The problem is present a challenge to existing homeowners and hope to get on the first rung of the ladder.

In the short term, the strengthening of activity in the housing market and construction sector could be a major game changer for growth. Government must work with businesses and using limited resources in a targeted manner, as is done today, in order to support the market.

We also need a comprehensive long-term strategy to meet our structural failure. Consideration should be given to how we manage a robust pipeline of new housing supply and the need for more sustainable to create a functioning market that destabilises stabilize than the rest of the economy.

Resurgence in housing activity could help boost economic recovery, but the housing market exceeded sustainable and well functioning should be a key feature of the long-term health of the economy.

Traditional spring is a great time to buy a home. I hope it's not too long before home buyers will benefit from the scheme NewBuy, strengthening the North East construction sector.

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