Chancellor Alistair Darling has unveiled measures to stimulate mortgage lending and reduce home repossessions in today’s Budget.
Mr Darling said that the stamp duty holiday on homes under £175,000 would be extended to the end of the year covering 60 per cent of the UK’s properties.
The Chancellor said that extra money would be added to the Home Buy Direct scheme which has already attracted interest from 32,000 first time house buyers.
Mr Darling also announced an £80 million extension to its shared equity mortgage scheme in a bid to boost bank lending.
The Chancellor said he believed the UK economy would shrink by 3.5 per cent this year, before growing 1.25 per cent in 2010 and 3.5 per cent in 2011.