The Royal Institution of Chartered Surveyors (RICS) has called on the UK Government to take 'significant and decisive' action to deal with the current housing market downturn. In a statement on Monday, RICS described the government's attempts to address the problems as 'limited' and 'with little real impact' and proposed a package of measures that will kick start the housing market. The measures tackle fiscal and financial issues, and propose new models for home ownership, availability and affordability of homes.
The Royal Institution of Chartered Surveyors (RICS) has called on the UK Government to take 'significant and decisive' action to deal with the current housing market downturn. In a statement on Monday, RICS described the government's attempts to address the problems as 'limited' and 'with little real impact' and proposed a package of measures that will kick start the housing market. The measures tackle fiscal and financial issues, and propose new models for home ownership, availability and affordability of homes.
Housing sales in the UK are at the worst level for 30 years with estate agents averaging just over one property sale a week in the three months to July, RICS' latest research report shows.
According to the organisation, the government should start by tacking the mortgage liquidity problem by incentivising the issuance of new mortgage backed securities and covered bonds. The organisation believes this can be achieved by allowing investors who buy them to enter into a repurchase arrangement with the Bank of England. Additionally, RICS said that the government should establish a tax free savings account supported by Government contributions to help first time buyers save for a deposit. Other measures included in RICS proposal range from fiscal and financial issues such as the introduction of a short term stamp duty; to availability and affordability issues such as bringing empty homes back into use and conversion of low cost home ownership properties to rent.
