It was a disappointing Spring Budget for first-time buyers. While hopes of 99% mortgages had already been dashed there was no mention of Lifetime ISA reforms either.
Commenting on the chancellor’s speech Mortgage Advice Bureau Danny Belton said: “It was looking promising for first time buyers for the Budget, but it seems we’re back at square one. While saving for a deposit isn’t the only challenge for FTBs, it is still a major blocker, and 99% mortgages would’ve been a good step towards helping thousands of prospective buyers get onto the property ladder.
“Focus now must shift to innovation in the market. Lenders must look at products that focus on rental track records and provide more options for first time buyers”.
Coventry Building Society’s head of intermediary relationships Jonathan Stinton said first time buyers weren’t even tossed a crumb and the silence around housebuilding was deafening.
“This Budget could have been an opportunity to present new innovative schemes which help buyers with affordability as well as saving for a deposit – but not even the bare minimum was done.
“It’s not only incredibly disappointing, it feels like a big mis-step on the chancellors part. First time buyers are the foundation on which the rest of the housing market stands. Failing to give them proper help is failing to help the rest of the market.”
Movera director Mark Tosetti was largely unimpressed by the budget too. “It was light on specific help for homebuyers and we would have liked to have seen much more done for first time buyers, including enabling affordability.
“However, other measures in the Budget show that the Government is at least aware that the UK housing market is key to growth. These include the Chancellor’s reduction in the higher rate of property capital gains tax which will generate more transactions. The scrapping of tax breaks, which make it more profitable for second homeowners to let out their properties to holidaymakers rather than to long-term tenants to rent, may indirectly help affordability.”
