The big news in this week’s Budget for the housing market is that Chancellor, Philip Hammond is giving a stamp duty tax break for first-time buyers.
The Chancellor’s argument is that a stamp duty break provides an incentive for first-time buyers to save for a deposit on a home. Sceptics claim that the scrapping of stamp duty for first-time buyers will simply help to support house price increases. The counter-argument from the Chancellor being that there is a significant package to help support the housing market, including building 3,500 additional homes to help balance supply and demand.
For properties up to £500,000, stamp duty won’t be due on the first £300,000. It’s expected that 95% of first-time buyers will see stamp duty cut, with 80% paying no stamp duty tax on their property at all.
Perhaps more significant than the stamp duty break for first-time buyers, the Budget revealed some disappointing growth figures for the next 5 years. The Office for Budget Responsibility has provided the largest downgrade in growth forecasts since the economic crash in 2008. The squeeze on real household incomes is likely to continue for the foreseeable future, with stagnant wage growth being eroded by inflation, which the government is predicting will come down to the 2% target over the next 12 months.
It is perhaps more important now than ever to ensure you have adequate mortgage protections in place should you become ill or out of work. It is also important to ensure you are on the best possible mortgage deal to help to bring down mortgage payments.
If we can help support with a mortgage on your property, or a remortgage, give us a call on 01604 877999.