As part of three key methods of boosting the housing market the NAEA is also calling for a long term review of Stamp Duty and to make sure that lending for home buyers is sensible and responsible.
The NAEA advises the chancellor to look to the USA and their $8000 First Home Buyer Tax Credit introduced last year.
Peter Bolton King, chief executive of the NAEA, says: “The evidence suggests that the US tax credit was worth billions to the housing market. A similar scheme here could encourage thousands of first-time buyers onto the housing ladder.”
He also adds “The majority of the housing industry recognises the dampening effect that stamp duty has on the market.”
And Bolton King says that without condoning irresponsible lending there are huge swathes of the country who could afford a mortgage but can’t because of “draconian lending criteria”.
He wants to see criteria relaxed and lending opened up to more people.
Chancellor of the exchequer George Osborne will deliver his first Budget at 12.30 on Tuesday.