The budget was a little bit lacklustre for the property market. No big announcements as such. However there were a few points worth mentioning:
- Most first-time buyers of shared ownership properties will no longer pay stamp duty. This applies when a first time buyer buys between 25% and 75% of a home and then rents the rest of it. It will apply for homes worth between £300,000 to £500,000 in line with the exemption for first time buyers announced last year. It can also be back dated to anyone who has bought since last year’s budget.
- The Help To Buy scheme, has been extended by two years now due to end in April 2023.
- To increase the number of homes being built, there is a boost for SME (Small and Medium Enterprises) house builders, with the government announcing up to £1bn of British business bank guarantees.
So very little has changed, the £1bn of investment is just a drop in the ocean, so the housing shortage will remain and houses will continue to increase in price. There will be more help getting onto the ladder, meaning more competition for housing, thus pushing the prices up.
Has the budget helped or hindered you?