Chancellor urged to reveal Your First Home terms
LRG's Tim Foreman has called on the Government to publish the full terms of the new Your First Home scheme in the Budget.
Calls have been made for the Government to publish the full terms of the new Your First Home scheme in the Budget today.
Estate agency LRG says it is “imperative” that these terms are revealed as soon as possible.
The Your First Home scheme is expected to be confirmed in John Healey’s inaugural Budget speech as Chancellor.
Complete terms
LRG wants the terms to be announced, including eligibility criteria, local price limits, repayment arrangements, developer requirements and launch dates.
Tim Foreman, Managing Director of Land and New Homes at LRG, says: “Timing is everything. Housebuilders need sufficient longevity to incorporate the scheme into land purchases and development programmes, while buyers need to know when they can proceed.
“At the same time an announcement followed by prolonged uncertainty risks encouraging people to postpone purchases.”
The impact on prices and buyers’ longer-term finances need to be assessed carefully.”
He went on to say that the impact of this “Help to Buy successor” on prices and buyers’ longer-term finances need to be “assessed carefully”.
He explains: “A smaller deposit does not, on its own, establish affordability.
“Buyers must understand the interest-free period, subsequent charges, repayment calculations and arrangements for selling or remortgaging.
“Affordability assessments should consider the mortgage, equity loan, existing debts, service charges and future costs together.
“Additional borrowing cannot provide a lasting answer if house prices continue to outpace earnings.”
He concludes that buyer assistance should form part of a broader package.
He says: “Targeted Stamp Duty thresholds or tapered relief for first-time buyers also deserve consideration, alongside measures that make downsizing easier and release homes through existing chains.”
