House builders call for stimulus spacey
BUILDING SOCIETIES CONFERENCE 1995
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The UK House Builders' Federation said yesterday the Government's home ownership policies are damaging the con- struction industry and threatening the economy.
Charles Gallagher, chairman of the federation, warned that a "kick start" was needed to stop the economy falling back into recession as early as this summer.
Mr Gallagher, speaking in Birmingham at the Building Societies' annual convention, attacked recent statements by ministers that have questioned the value of home ownership. He said plans to change mortgage protection payments, announced in the November Budget, were an example of the Government's changing attitude.
Mr Gallagher also called on the Government to raise the level of tax relief on mortgage interest payments from pounds 30,000 to pounds 50,000.
"A lack of confidence in the Government's attitude to home ownership, together with a lack of confidence in the economy, is holding back the housing market, and a weak housing market is holding back the domestic economy," he said. "A package is, in my view, urgent. There is now a real risk of the domestic economy slipping back into recession. In such circumstances, hopes of tax cuts or other fiscal relief will disappear."
The Bank of England director, William Allen, warned house prices may start to slide because of weak UK domestic demand and lower inflation. "Demographic factors too seem unlikely to stimulate demand. The number of people between 20 and 29 - candidates to become first-time buyers - shows a fall of 1.7m in the current decade," he said.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments