RICS makes suggestion for mortgage market improvements

The Royal Institution of Chartered Surveyors (RICS) has made suggestions for how to improve access to mortgages for first time buyers to the coalition government ahead of the Budget.

According to RICS, one of the ways to boost the property sector could be for the government to consider lending or guaranteeing first time buyers a “reasonable” deposit in return for an equity stake in the property. It was claimed this would act as a stimulant on the market, while the Conservative-Liberal Democrat alliance would also be provided with a clear return on its initial investment.

RICS also called for the introduction of a mortgage indemnity scheme that works for the whole property market. The body previously predicted the sector is going to remain subdued over the course of the year, due to fears over the eurozone crisis and the ongoing global financial instability. Spokesman Ian Perry told those looking to sell a home to set a realistic price for the house if they want to attract a buyer.