Commercial Property News

Prime Minister Gordon Brown unveiled plans today to help  vulnerable families struggling with mortgage payments avoid losing their homes and bring forward funding for new social housing from existing budgets.

The government and property developers also plan to offer five-year interest-free loans for some first-time buyers -- both to help people move into affordable homes and support the house building industry.

Communities Secretary Hazel Blears said the package was aimed at "people who just need that little bit of extra help to keep them afloat."

"I think it's the responsibility of government ... to do what we can to help the decent people who want to stay in their homes," she told GMTV television.

A government source said those measures would cost about £1 billion.

The government later this morning announced that the Stamp Duty threshold had been raised from £125,000 to £175,000 for the next 12months only. The markets were so underwhelmed by this "pathetic increase" that it may do more political harm than good to the Prime Minister's standing.

Brown also plans later this week or next to look at ways to help households cope with the rising cost of fuel bills, perhaps by asking utility firms to pay money into a voluntary fund that could be used to make poor households more energy efficient.

The prime minister is hoping for an economic rebound to boost his popularity in time for the next election that is due by the middle of 2010. But he must also resolve the dissent within his own party and questions over whether he is the right person to lead Labour.

While speculation of an imminent leadership challenge has waned, there will still be a lot of focus on the prime minister's speech to his party's annual conference later this month.

"We've got our work cut out. The coming 12 months will be the most difficult 12 months the Labour Party has had in a generation," Darling said an interview published on Saturday.