Chancellor makes housing pledge

Chancellor Alistair Darling has promised to continue to support the UK housing market.

It is good news for people with first-time buyer mortgages and Mr Darling said the government would take "whatever action is necessary".

The chancellor made the pledge during a visit to China and he highlighted that action is already being taken.

He pointed to the extra liquidity provided by the Bank of England to the money markets and Gordon Brown's meeting with bank bosses this week.

"We will continue to take whatever action is necessary to support the wider financial market and therefore, through that, the housing market," said Mr Darling.

"In relation to the housing market, you will be aware that we are working with the Bank of England to continue to support stability within the financial markets," he continued.

The news will be well received by people with first-time mortgages, many of whom have already been boosted by recent cuts to the base rate of interest.

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