LONDON (Reuters) – The U.K. government said on Thursday it was extending a moratorium on new home purchases, a move that will allow owners to save on their mortgage payments and help keep property prices stable.
The move, part of a broader effort to keep prices in check, will make the mortgage-free phase of the estate tax-free, a government spokeswoman said.
Homeowners with a mortgage are able to save up to 30 percent on their house prices by extending the moratorium.
Under the current rules, owners of existing homes are not allowed to buy new homes until 2035, when the tax on new homes kicks in.
This will allow more owners to start saving for a home purchase and the government will be able to provide help to those who are in need of it.
The Home Buyers’ Association welcomed the move.
The government’s move will help millions of homeowners save for their homes while maintaining the stability of the property market,” the group said in a statement.
The U.S. Federal Reserve said on Friday that it expected the country to have a 2 percent unemployment rate by the end of the year, down from 3.1 percent in January, and warned that the economy is on a “slow recovery”.
The U of C said it was anticipating the unemployment rate would rise to 4.9 percent by the middle of 2018.
(Reporting by David Ljunggren; Editing by Simon Cameron-Moore)