Seems like news a lot of people have been waiting for, the introduction of 95 percent mortgages for first time buyers in the U.K., although this is restricted to new built homes, to shore up the construction industry. With various incentives, this is a very good measure, and Homebuilders shares have started to move up, like Wimpey and Barratts.
The mortgages will be available from Barclays, NatWest and Nationwide, and the demand seems pretty good.
But for the Housing sector as a whole, maybe such mortgages should be made available on older houses also, for families who prefer to buy such houses being able to do so on 'affordability mortgages'.
The Prime Minister's much announced reintroduction of Council House Right to Buy is still awaited. The sooner that is introduced, the sooner the housing sector will be lifted up. That, together with job preservation and work creation exercises.