Several weeks ago the Government published a white paper about the state of the housing market and concluded that it was “broken” and despite this there was no mention of housing or help for first time buyers in The Budget.
Given the shortage of affordable housing, particularly for first time buyers, we might have expected to see the introduction of some measures that would help make it easier for first-time buyers to get on to the property ladder. The conclusion from the Government’s recent white paper was a simple one – we’ve not built enough houses over a sustained period to meet the rising population levels and housing requirements. However, there was virtually no mentioned of any steps to help improve the situation for the UK’s housing market.
In addition, it was expected that there might be some action taken to help first-time buyers with stamp duty costs. With the average first-time buyer spending more than £200,000 according to The Halifax, the extra burden of stamp duty places more pressure on first-time buyers who are already struggling to raise enough finance to find the average £32,000 of deposit they need to help secure a mortgage.
There is also bad news for buy-to-let investors as measures announced in July 2015 to curb mortgage interest rate relief are due to come in to force in April, but were given no mention in the Budget either.
Unfortunately, the Budget gave little news of changes that will help to create more homes affordably. Couple that with movements expected in the US economy that interest rates will rise, and that is likely to put pressure on the Bank of England to raise interest rates, further adding to the cost of home ownership. We can help to secure the best possible mortgage deal for your first home or if you are looking to re-mortgage. Call us on 01604 877999.