Missed opportunity’ to help first time buyers
As yesterday’s budget dust settles, industry specialists are left frustrated and annoyed that the Chancellor managed to touch on the importance of first-time buyers but still left them out in the cold.
The Budget failed to reform stamp duty levels, with the current exemption remaining on properties up to a value of £125,000, despite the average house price in the UK now running at over £200,000.
“As national house prices continue to rise and the cost of living increases it is first time buyers who are really suffering,” said Peter Bolton King, chief executive at the National Association of Estate Agents. “Once again the Chancellor has refused to address some of the most important issues head on."
“It’s about time the government took real steps to ease their plight,” he added.
Easing his tone a little, Peter Bolton King said he was pleased to see the stamp duty incentive being applied to zero-emission homes in the new build sector, but wanted the measures to go further, covering DIY installed green home improvements.
The budget was a lost opportunity to redress the burden of stamp duty, according to the Alliance & Leicester. “Our research reveals that the majority of [first-time buyers] are caught in this tax trap, preventing them from getting a foot on the property ladder,” said director of mortgages, Stephen Leonard. “Two-thirds of first-time buyers are looking for homes over the current £125,000 stamp duty threshold.”
“House prices have risen over 11% in the past year, and as the current average house price for a first time buyer stands at £151,030, the limit needs to be at least this amount to have any effect,” Leonard added.
Paul Smith, chief executive of haart estate agents, is another frustrated by the Chancellor’s line on stamp duty. "Stamp duty is an all-encompassing tax for everyone and it particularly deters first-time buyers, who are already struggling to raise the capital for a deposit, from entering the market - the very people the government says they want to get back into the market. It is crucial for the survival of the housing market that first-time buyers are encouraged to enter," he said.
Green effort
In line with the increasing zeal of many to over-embrace the green objective, the Chancellor did make stamp duty concessions for zero-carbon homes
Taking effect from October, stamp duty will be waived on new homes costing up to £500,000 that meet the zero-carbon criteria. In addition, those eco-homes built to the same standard but costing in excess of £500,000 will have £15,000 knocked off their stamp duty bill.
But Helen Adams, managing director of first-time buyers' advice site, FirstRungNow.com said: "Removing stamp duty from the purchase of zero-carbon homes is worthy and welcome but at the moment the number of these homes is very low – something for house-builders and sellers to work on.”
As yesterday’s budget dust settles, industry specialists are left frustrated and annoyed that the Chancellor managed to touch on the importance of first-time buyers but still left them out in the cold.
The Budget failed to reform stamp duty levels, with the current exemption remaining on properties up to a value of £125,000, despite the average house price in the UK now running at over £200,000.
“As national house prices continue to rise and the cost of living increases it is first time buyers who are really suffering,” said Peter Bolton King, chief executive at the National Association of Estate Agents. “Once again the Chancellor has refused to address some of the most important issues head on."
“It’s about time the government took real steps to ease their plight,” he added.
Easing his tone a little, Peter Bolton King said he was pleased to see the stamp duty incentive being applied to zero-emission homes in the new build sector, but wanted the measures to go further, covering DIY installed green home improvements.
The budget was a lost opportunity to redress the burden of stamp duty, according to the Alliance & Leicester. “Our research reveals that the majority of [first-time buyers] are caught in this tax trap, preventing them from getting a foot on the property ladder,” said director of mortgages, Stephen Leonard. “Two-thirds of first-time buyers are looking for homes over the current £125,000 stamp duty threshold.”
“House prices have risen over 11% in the past year, and as the current average house price for a first time buyer stands at £151,030, the limit needs to be at least this amount to have any effect,” Leonard added.
Paul Smith, chief executive of haart estate agents, is another frustrated by the Chancellor’s line on stamp duty. "Stamp duty is an all-encompassing tax for everyone and it particularly deters first-time buyers, who are already struggling to raise the capital for a deposit, from entering the market - the very people the government says they want to get back into the market. It is crucial for the survival of the housing market that first-time buyers are encouraged to enter," he said.
Green effort
In line with the increasing zeal of many to over-embrace the green objective, the Chancellor did make stamp duty concessions for zero-carbon homes
Taking effect from October, stamp duty will be waived on new homes costing up to £500,000 that meet the zero-carbon criteria. In addition, those eco-homes built to the same standard but costing in excess of £500,000 will have £15,000 knocked off their stamp duty bill.
But Helen Adams, managing director of first-time buyers' advice site, FirstRungNow.com said: "Removing stamp duty from the purchase of zero-carbon homes is worthy and welcome but at the moment the number of these homes is very low – something for house-builders and sellers to work on.”
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