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Boost for homes market 'speculation'

Wednesday 30 August 1995 18:02 EDT
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The Treasury described as "pure speculation" reports that the Chancellor was drawing up a three-point plan to kick-start the housing market. The proposals were said to include an increase in mortgage interest tax relief for first-time buyers, abolition of stamp duty and an extra pounds 750m for housing associations to buy repossessed homes.

When testifying to the Treasury select committee in July, Kenneth Clarke said he was sceptical about measures to kick-start the housing market and pointed out that when the Government was clamping down on expenditure, fiscal measures would have to be "pretty extensive in public spending terms to have any effects on such a huge market".

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