The city council's Labour housing spokesperson today welcomed action by the government to try and kickstart the housing market. Coun. Tracey Simpson-Laing was speaking following the news that the government has axed stamp duty on properties up to £175k for the next 12 months. But there was other good news which could benefit York she said:

"The government has brought forward plans to offer five year free loans up to 30% on new homes to help first time buyers. It is also bringing forward spending from future years to encourage social housing to be built which, with higher than average prices for homes for the region, and with over 40% of households on incomes under £20k, we are in desperate need of in York. This announcement should also help the building industry which many York residents are employed in.

"There are more details to be brought forward on the proposals announced today but some proposals will involve more of a role for local councils and I welcome that. Councils and housing associations will be able to pay off debt for homeowners struggling to pay their mortgages, and then charge them rent which should help to reverse the number of home repossessions. With home repossessions on the increase in York, this is good news".

Coun. Simpson-Laing said the increase in the stamp duty threshold for the next 12 months will not be a magic solution to the problems currently being experienced in the market but will help to restore some confidence and encourage those first-time buyers who are able to get low deposit mortgages to buy in the next 12 months rather than to wait.