On Tuesday, stamp duty was axed for a year on properties costing less than£175,000, meaning buyers at the bottom end of the market will be exempt from paying the tax and saving them up to£1,750.
Additionally, households earning less than£60,000 will be offered loans free of charge for five years on new properties and a new mortgage rescue scheme will help households struggling to meet their payments.
But retailers are unconvinced the measures can help revive the suffering furniture and home-related market, which relies on people buying and then furnishing houses.
Furniture Village finance director Ed Duggan said: “The housing market is in a serious condition. Whether this is enough to make a big impact on retailers, I don’t know. I hope it’s something that puts confidence into the economy. Every little helps at the moment.”
Seymour Pierce analyst Freddie George said: “I don’t think this is going to be that significant for retailers. It won’t really help stimulate a very nervous market, but it will probably have a little bit of an impact on homewares retailers.”
Dresdner Kleinwort analyst Sanjay Vidyarthi said: “This won’t have a massive impact on retailers. It is one small factor that could give respite for some consumers, but I wouldn’t expect Topps Tiles or Carpetright to be jumping for joy.”
Investec analyst David Jeary noted: “This could be a small positive to sentiment for bigger-ticket retailers such as DSGi, Home Retail and Land of Leather.”
Tuesday’s initiatives form part of a wider government attempt to ease financial pressures on consumers. Measures to help with fuel costs are also expected, as Prime Minister Gordon Brown battles to restore his credibility.
At the weekend, Chancellor Alistair Darling warned that the downturn may be “more profound and long-lasting than people thought”.
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