Mortgages for Extensions - Will there be a rush?

Written by Sam Jones on 07 September 2012.

Government proposals announced yesterday regarding the relaxation of planning laws won't cause a rush for mortgages for extensions if Rachel Reeves MP is to be believed.

Labour's Shadow Chief Secretary to the Treasury, has severlely criticised the plans and has responded that the economy, now in a double dip recession coupled with ageneral housing crisis is going to need far more than piecemeal measures.

Ms Reeves made clear that Britain needs to start building again, but commented that slashes by Government to housing budgets in tandem with  the reduction in the number of new build affordable homes is a complete failure of the infrastructure projects  regularly announced by Cabinet.

She states in a recent article that the difficuties are not with planning system or planning laws but rather down to a lack of confidence and demand in the economy, caused by reductions in public investment and poor economic planning.

Instead of relaxing planning laws, Ms Reeves supports the alternative of helping homeowners and small firms, by cutting VAT to  5% on all home improvements, home maintenance and repairs.

She also calls on the Governemt to adopt Labour plans to introduce a tax on bank bonueses to specifically fund the build of 25,000 affordable homes which it is estimated would create at least  100,000 jobs.

The debate over the proposals is likley to go on for some time, but in the ishort term, there is unlikley to be a rush for finance.

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