There was plenty of speculation in the run up to this year’s Budget that there would be a stimulus from the Chancellor of the Exchequer to increase the number of houses being built to cater for the nation’s growing population. There was also gossip that there would be a stamp duty cut to help inspire first time buyers.
Did speculation turn to fact? At a glance, here is a summary of the Budget 2017 relating to house building/ownership and the economy:
- Growth forecast for 2017 downgraded from 2% to 1.5%
- £3bn to be set aside over next two years to prepare UK for every possible outcome as it leaves EU
- Stamp duty to be abolished immediately for first-time buyers purchasing properties worth up to £300,000
- The move benefits 95% of all first-time buyers across England, Wales and Northern Ireland
- There will £44bn in government support to boost construction of 300,000 new properties a year by 2025
Courtesy of Rob Young, Business Reporter for the BBC, he has calculated how much a first-time buyer (FTB) could save now stamp duty has been axed to up to £300,000:
Source: Rob Young, Business Reporter, BBC
Broadly speaking Michael Anthony Estate Agents welcomes the steps taken by the Chancellor when he addressed Parliament on 22 November 2017. As Michael Donnachie, Senior Partner commented: “We warmly applaud these efforts by the Chancellor. Something had to be implemented to encourage first time buyers onto the market.
As we saw recently, properties in Beds, Bucks and Herts have risen 6% on average over the last 12 months. Whilst this is good news for existing property owners, it is not always such good news the first-time buyer.
At Michael Anthony Estate Agents, we always try to assist FTBs. For example, our recent partnership with Your Home by Heylo offers shared ownership options for people trying to get onto the ladder. Whilst new homes are being built and stamp duty has been cut for first time buyers purchasing properties up to £300,000, a buyer still needs to find between 10% and 15% as deposit as demanded by most mortgage lenders.”