Call for more house price intervention

The government must act to prevent a future boom that makes property unaffordable, a house price pressure group has argued.

Spokesperson for PricedOut.org.uk Katy John said that prices are likely to dip in the next few months, but beyond that it could be “bad news” for first-time buyers with property values starting to soar again.

She suggested that “increasing taxation of multiple property ownership and buy-let, building more houses and implementing the reforms outlined in Lord Turnerís report” could combine to prevent this.

Ms John also advocated more regulation of mortgage lending.

At present, affordability is at its best for 13 years, according to the Lombard Street Research/Daily Telegraph housing affordability index, something that could prompt people to look to get a home loan now.

This scale ñ which regards a reading of 100 as constituting affordable – rose from 108.4 to 118 in the first quarter of this year, the newspaper reported.

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