Barratt chairman seeks house boost

THE chairman of Britain's third-largest housebuilder has called on the Chancellor to introduce measures in the Budget to stimulate the fragile housing market, Tom Stevenson writes.

Sir Lawrie Barratt, speaking at Barratt Developments' annual meeting, said: 'Mortgage tax relief should be restored to the level prevailing in 1991, or at the very least be maintained. Stamp duty should be abolished without delay.'

He also recommended that the Business Expansion Scheme, which had made 50,000 houses available for rent since tax breaks were introduced in 1988, should be reprieved. The scheme is due to end on 31 December.

There is widespread speculation in the City that the Chancellor will scrap tax relief on mortgages (saving pounds 3bn- pounds 4bn a year), or restrict the benefit to first-time buyers.

Stamp duty, which was re- introduced in August last year after a temporary suspension, adds 1 per cent to the price of a house up to pounds 250,000.

Sir Lawrie confirmed an increase in activity in the house market since the summer, saying that the group's sales in the UK since 1 July were running 25 per cent ahead of last year.