New Chancellor told he must help first-time buyers

First-time buyers need extra help, the financial data group Moneyfacts has warned.

Rachel Springall, Finance Expert of Moneyfacts, says there will be plenty of speculation about tax ahead of the Budget this autumn.

Last year, rumours about possible new taxes in the Budget were blamed for causing turmoil in the property market. Many in the industry would fear a similar scenario this time around.

New Chancellor John Healey, who was appointed by Andy Burnham, is set to deliver his first Budget on 28 October.

Hot topic

Springall says: “There have been discussions about creating a new ISA aimed at first-time buyers. This might help those looking to start saving for a home, but it would be beneficial to allow savers to temporarily access funds in their existing Lifetime ISA, without penalty.

“The house purchase cap on LISAs has not kept up with the changing times, so while the product launched with good intentions in 2017, it is no longer fit for purpose for every single borrower across the country due to property prices rising over the past decade.”

She adds: “Taxation is set to be a hot topic in the run-up to the Autumn Budget, but even without additional reforms, existing plans are going to transform estate planning, such as the inclusion of unused pension pots in inheritance tax liabilities from April 2027.”