Legal & General Mortgage Club has backed proposals from minister Ed Balls that a stamp duty break should be given to first-time-buyers.
The Labour giant has claimed that the break will help to boost the mortgage market, which will help get the economy moving again.
Legal & General Mortgage Club managing director Ben Thompson said: ““The introduction of a two-year stamp duty break for first time buyers, combined with the construction of 100,000 new affordable homes is exactly the kind of measures housing market needs to boost growth.
“The average age of first time buyers have been increasing steadily over the last five years, due to a combination stringent lending criteria, high deposit requirements and a lack of affordable housing. A stamp duty holiday on properties up to £250,000 will certainly help to rectify this issue.
“This proposed innovation by the shadow chancellor is exactly what the UK economy needs to stimulate growth. During the stamp duty holiday we saw end in March 2012, the CML revealed data which indicated a 7 per cent jump in loans to FTBs during December 2011.
“The appetite is clearly out there for first time buyers to get onto the property ladder. However, current market conditions make it extremely difficult. Both the government and lenders need to work together to make homeownership more achievable for more people, and a stamp duty break would definitely be a step in the right direction.”
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