An expert explains what can be done to improve the property market - particularly for first time buyers - video Dailymotion

Interview with David Hannah of Cornerstone Tax

Transcript

00:00So, the key question for any first-time buyer, indeed any buyer, is will the outcome of the

00:06election trigger an economic recession?

00:10Against that background, of course, we've seen zero growth in GDP in the last 30 days

00:16against a fractional growth in the month before.

00:19Well, it's not the most certain position.

00:21If the Bank of England gave a clear signal that rates were going to be cut with an impact

00:25on, I'll call it the forward forecast rates, that would allow mortgage companies to give

00:32better deals.

00:33People would then feel more confident.

00:35That would allow them to make offers on these properties that are on the market, and the

00:39whole thing would kick off.

00:41It would also mean those people who are currently in mortgage difficulties may be able to arrange,

00:46I'll call them time-to-pay plans, against the reflected lower rate to allow them to

00:52pay their way out of the risk, again, reducing potentially the number of properties that

00:56are having to be marketed.

00:58Fundamentally, however one looks at the economics of this market, we are a million homes short

01:04in this country, and we're not seeing that level of activity in construction because

01:09of all these uncertainties.

01:11We're not seeing any incentives towards developers or investors.

01:17Indeed, we're seeing disincentives.

01:20Furthermore, we have a completely, to use a term, sclerotic or clogged up planning system

01:28that seems designed to delay these things.

01:31We need a radical system of measures, not just tax adjustments and interest rate adjustments

01:36to get Britain building.

01:39The faster we can get people under their own roof or under a roof, then we can sort out,

01:46having housed all these people, we will then have no problem with an undersupply, which

01:51has been an upward pressure on house prices, and then maybe we can start to return to a

01:56degree of sanity in the housing market in this country.