Rarely had a Chancellor faced such pressure to remedy the ills of the property market. The problems on his “to do” list ran from recalcitrant banks reluctant to lend to homebuyers – but too keen to repossess them – to the lack of incentives for would-be owner-occupiers.

Such was the weight of expectations that Alistair Darling was bound to disappoint. The measures are unlikely to ensure that the market recovers earlier than expected. But there will be a little less pain for those who lose their homes. There is also the scatter cushion concession – the tax break for those planning some interior decor changes who will now pay less VAT.

Mr Darling pledged to act tough with banks who did not loosen their purse strings, but it seems that those who do not comply will face only a telling-off. Borrowers in search of a competitively priced loan deal must wait until the spring when the Government hopes to gain the European Commission’s consent to guarantee mortgage-backed securities. This should allow the banks (if they are so minded) to raise funds to advance to homebuyers.

The fall in property prices has produced opportunities for first-time buyers. But the Chancellor wants them to learn the lesson of thrift before they do so. He is proposing – in the vaguest terms – a tax-efficient savings schemes for those setting money aside for their first home, signalling a return to the procedures of the 1970s when lenders would not consider loan applicants who had not dutifully saved for several years. It is likely that most first-time buyers would have preferred an extension of the temporary stamp duty holiday on properties up to £175,000 introduced in September.

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As expected, Mr Darling declared that no main lender will, henceforth, repossess a struggling homebuyer until he or she has missed three mortgage repayments.

However, such institutions already show understanding to borrowers in arrears. Nonmainstream or “secondary” lenders are not so tolerant, but Mr Darling seems to be unaware of their heavy-handed tactics. Or perhaps his extension of mortgage interest income support is an acknowledgement that some loan businesses will continue to exploit every loophole to justify the swift eviction of unfortunate customers.

There will be some extra cash to provide social rented accomodation for these victims of the downturn. The £775 million allocated by the Chancellor should also enable housing associations to buy up some new-build homes, so assisting the construction industry.

For those staying put in their homes, the reduction in VAT presents a chance to introduce a new colour scheme at a slightly lower cost. Ikea could appreciate the Chancellor’s gesture.

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