Estate Agents want MIRAS back

The National Association of Estate Agents is urging the government to take immediate action to assist the housing market out of the doldrums. In doing so it has floated two ideas which it feels will go a long way towards improving the situation. Firstly it is calling on the government to come to the aid of struggling first-time buyers by offering them a stamp duty holiday, and secondly, it is urging the chancellor to take the radical step of providing temporary tax relief on the mortgage interest of home owners’ primary residence.

Peter Bolton King, chief executive of the NAEA, says the proposals will ease the difficulty that people in this country are facing. “It will give people the confidence boost that is needed for the market to get back on a more positive footing.”

He adds: “What is clear is that interest rates are dislocated from the situation and that the banks are not passing on any interest rate benefits to customers. If anything the mortgage rates are getting tighter. Clearly, more action needs to be taken to ease pressure in the markets.”

The timing of the announcement, the day before the Bank of England Monetary Policy Committee meet to discuss interest rates, is unlikely to be accidental.

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