Brown says UK can deal with liquidity crisis

Prime Minister Gordon Brown claims the UK is well placed to deal with the global economic crisis.

In an interview today he says the figures of house price falls from Halifax should be considered in relation to the past 10 years of solid growth in the UK housing market.

Halifax’s index reveals a 2.5% drop in house prices in March, the largest drop since the early 1990s.

Brown says: “We’ve seen house prices rise by about 180% over the last 10 years, so a 2.5% drop is something that is containable.

“The issue is, can we ensure that growth is maintained in this economy, that we can get the housing market to continue to move forward?”

He tells the BBC this is why the government has introduced shared equity schemes for first-time buyers.

The plans are based on £3m investment in shared housing that Brown hopes will help first-time buyers get on the housing ladder.

The cash injection will come in the form of £1,500 grants to help with legal fees and furniture.

They are being offered in conjunction with the Open Market Home Buy scheme, an existing plan that helps key workers and some first-time buyers.