Darling grazes options for homebuyers

The chancellor has drawn up a series of measures to aid homebuyers and to promote first time buyers reaching the property ladder.

The chancellor has drawn up a series of measures to aid homebuyers and to promote first time buyers reaching the property ladder.

Alistair Darling, who has been subjected to repeated calls from banks to help the UK property market regain momentum through tax breaks for buyers, has taken the cautionary measure of not saying what measures might be put in place.

Instead, Mr Darling announced a list of potential moves the government may make which, if the proposals go through, could signal the first chance for first time buyers to get onto the property ladder since the credit crunch hit banks' confidence 12 months ago.

The plans include suspending stamp duty, so buyers can forgo paying tax for a number of years; reintroducing income support for mortgage interest payments, to protect borrowers who lose their jobs; and the creation of a tax-free fund, to help first time buyers generate their deposit.

Despite the precautions by the chancellor not to suggest a particular preference, it is widely believed that Mr Darling is in favour of offering the most popular measure; removing stamp duty.

There is a danger however that this proves to be a short-term solution, and could lead to the same problems coming back again, leading to suggestions the government will instead choose another option for long term security.