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Come on, Darling

Catherine Deshayes

Alistair darling has been told to speed up measures to help the mortgage market

Chancellor of the Exchequer Alistair Darling has been urged to move quickly when making a decision over any measures he will be introducing to help the UK's floundering mortgage market.

Along with Prime Minister Gordon Brown, Mr. Darling has been meeting banks and mortgage lenders to discuss liquidity, which is widely regarded as the key factor affecting mortgage availability.

This has meant lenders have been keen only to attract low-risk customers who can offer a significant deposit.

The Royal Institution of Chartered Surveyors (RICS) said, "Many would-be buyers are either struggling to raise the necessary finance to precipitate a move or are exercising caution in the light of current economic uncertainty, so any measures would be of use."

Earlier this week, Mr. Darling told the BBC that he was looking at various possible ways of boosting the property market, sparking speculation that he will introduce stamp duty ‘holidays.'

Advisors are urging him not to leave this decision unannounced until the pre-budget report in November, as this could prompt many potential buyers to delay their moves until then in the hope of saving money on upfront costs once the measure is in place.

The House Builders Federation (HBF) said that this sort of delay may be detrimental to the housing market as it could make people think about whether to proceed with a transaction.

In the same vein, RICS urged the government to get on and make a decision.

It is hoped that such pressure may have the positive effect of prompting Mr. Darling to make an earlier announcement, which could mean that the effects of a move could be felt at an earlier date.