BUDGET: Property figures slam lack of support for first time buyers
Even with a brake on investors through a hike of Stamp Duty, property leaders say not enough is being done to help people trying to get on the ladder.
Following the immediate increase in Stamp Duty for property investors announced in the Budget, could this be good news for first time buyers (FTBs)?
That’s the question being asked by industry experts following the rise in Stamp Duty for landlords and second home owners, who must now pay 5% additional duty, up from 3% previously.
The Chancellor’s argument is that, if buy-to-let landlords are less likely to purchase properties, it leaves the market more open for people trying to get on the property ladder. And there are some incentives for FTBs with a temporary reduction in Stamp Duty still in place until April next year.
But experts appear unconvinced that there is enough help for FTBs.
Very little was announced by the Chancellor in the Autumn Budget that would have given first time buyers reassurance.”
Steve Griffiths, CCO at The Mortgage Lender, says: “Very little was announced by the Chancellor in the Autumn Budget that would have given first time buyers reassurance that their journey onto the property ladder is going to get better soon.
“It was already rumoured that the government would not be extending the increase to the stamp duty threshold which has supported first time buyer activity over the last two years,” he says.
“Without this additional relief we could see fewer first time buyers able to purchase properties, or buyers requiring larger mortgages which may not be available for this cohort.”
He says he is not sure if the Stamp Duty increase for landlords will give FTBs an advantage.
Help to Buy
Tim Foreman, MD of Land & New Homes at the Leaders Romans Group, agrees: “There was a notable lack of a scheme akin to Help to Buy, which would stimulate the bottom end of the market and will help first-time buyers get on the ladder.
“This would motivate the developers to press ahead with their developments and provide the much-needed and desired new home targets,” he says.
But he does add: “Now that first-time buyers will continue to save money on stamp duty, it will keep the market moving”.
We need tangible support right now to increase routes to homeownership.”
John Phillips, CEO of Spicerhaart and Just Mortgages, says: “While increasing supply is necessary, we also need tangible support right now to increase routes to homeownership and reduce affordability pressures, particular for first-time buyers”.
