Housing market measures offer little respite

By Jennifer Hill

LONDON (Reuters) - Chancellor Alistair Darling has unveiled measures designed to help those struggling to get onto the housing ladder and hard-pressed mortgage holders.

In his first Budget, Darling pledged 8 billion pounds to boost affordable and social housing over the next three years, and delayed stamp duty payable on shared ownership properties.

He also said he wanted to strengthen the mortgage market, hit by the global credit crunch, and work with industry to introduce affordable fixed-rate home loans.

But industry experts said the measures offered little respite to those struggling to enter the market or meet the rising cost of servicing mortgage debt.

Nicholas Leeming, director of property portal Propertyfinder.com, said: "Hard-pressed homeowners, in particular first-time buyers, need financial relief immediately.

"Once again, the government has shirked its responsibility, merely blowing smoke around the issues in an attempt to disguise inaction."

Consumers are increasingly feeling the pinch from the global credit crunch, following an end to cheap credit, and rises in household mortgage repayments, food, fuel and council tax costs.

Darling said 70,000 new affordable homes will be built per year by 2010/11 and share equity schemes for key workers, such as teachers and nurses, and first-time buyers will become available to those who can afford half the value of a property, as opposed to the current three-quarters.