propertytalk Live! - Budget 2011: Property industry reacts to Chancellor's plans

propertytalk Live! - Budget 2011: Property industry reacts to Chancellor's plans

Yesterday's Budget saw Chancellor George Osborne announce a number of measures aimed at boosting the property sector.

Chief among them is the Firstbuy Direct scheme which will see first-time buyers receive £250million aid from the Government - helping around 10,000 people onto the housing ladder.

In addition, regulations required to convert disused commercial property into residential homes, are also being relaxed to further assist developers.

Here is what the industry has to say about the Budget changes:

Ian Fletcher, director of policy at the British Property Federation, said: "This package broadly makes sense, because it targets home deposits, and is about as much as the Government could realistically do in current circumstances. It is important that any Government spending at this juncture is also supporting growth and jobs and we would like to have a seen a refined policy which targets such aid at homes yet to built or completed, rather than a means of house builders selling unsold stock."

Peter Williams, Executive Director of The Intermediary Mortgage Lenders Association, said: "Any move to help first-time buyers onto the property ladder must be applauded as this is a sector that has been particularly badly affected by the credit crunch and subsequent mortgage drought.

"However, the Government must see First Buy as one of a number of mechanisms to help the mortgage and housing market because it will have little impact in isolation. George Osborne estimates that this scheme will help approximately 10,000 borrowers, but that would only equate to a 5% rise in the number of loans to first-time buyers compared with 2010 numbers.