Six ways to swing market in home-buyers’ favour

THERE have been calls for the Government to intervene in the housing market in the budget. If not handled properly, this could be a recipe for further house price inflation.

I suggest the following measures, some of which would be painful in the short term:

1. If we are going to pressurise the Government to intervene with incentives, only do this when the ‘first home’ end of the market is in significant decline, say by 10%-15% annually. It is only in a market where supply outstrips demand by an appreciable amount that incentives will be passed on to the consumer. Where the opposite situation exists, history shows that developers and estate agents increase prices and pocket the ‘incentive’ windfall.