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Deputy
prime minister moves to ease homes shortage as chancellor
launches affordable mortgage plan for first time buyers
John
Prescott will this week match Gordon Brown's plans to help
100,000 first-time buyers get on the housing ladder by unveiling
plans of his own to increase the supply of housing.
The
deputy prime minister will announce that he is accepting most of
the recommendations of Kate Barker's 2004 report on housing
shortages on Wednesday, the day when the chancellor gives MPs
details of his deal with the mortgage lenders to share up to
half the cost of a first-time buy, allowing young couples and
key workers to afford repayments on the other half.
Mr
Brown's well-trailed initiative, first pioneered by voluntary
housing associations a generation ago, was welcomed by building
societies and banks. But they warned that unless the UK housing
stock is expanded it will merely fuel rising house prices at a
time when they finally appear to be stablising.
Coincidentally, the latest house price survey published
today shows that house prices have fallen for the 11th
consecutive month, but also demonstrates that they are
stablising.
The
survey by the property research group Hometrack found that
prices fell by 0.1% in the four weeks to May 17, the same amount
of decrease as the previous two months.
The average home now costs £161,000, compared with
last June's peak of £167,700, and down 2.3% over the last 12
months.
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