Expert View - How will the Budget affect first time buyers?
How will measures in the Government's recent Budget affect house prices and first time buyers?
Our Sales Negotiator Jamie McCutcheon sets out the impact of the new policies in our latest Expert View.
THE Chancellor’s measures are designed to encourage the construction of 300,000 more homes per year by the mid-2020s.
In theory his £44bn boost will ease shortages and help more people onto the housing ladder yet the industry consensus seems to show that, in the short term, we may instead see prices rise.
Rising number of buyers are expected to enter the market, including many first time buyers encouraged by the abolition Stamp Duty Land Tax for properties under £300,000.
This could well sharpen demand and push prices up where there isn’t yet enough supply of housing stock.
The commitment to build new homes should have been agreed a long time ago. Until these houses are built and populating the sales market, then house prices are bound to go up as demand is not showing any signs of decreasing.
We expect that some buyers with funds available may want to be quick off the mark to avoid paying more for a property if the market does see a house price rise, as predicted.
However, in the long term, measures to make more housing available – especially for first time buyers – should help ease pressure on the market.
Certainly, support for first time buyers to benefit from the Stamp Duty shake-up is welcome as it will allow them to get a foot on the housing ladder without a tax bill looming over them.
It will be interesting to see how the market responds within the coming weeks and months, and much will depend on how far the Chancellor’s measures translate into meaningful changes on the ground.
Anyone who wishes to find out more about the impact of the Budget is advised to contact us for more details.