What impact did the Autumn Budget have on First Time Buyers?
· Short term - little impact
· Medium term - Increasing stamp duty threshold – meaning higher costs for First Time Buyers in April 2025 for properties over £300,000.
· Long term – High targets for home building which should have a positive impact on the supply of properties in the UK housing market, although there are many hurdles to jump through.
As Rachel Reeves strolled out of number 10 with her red briefcase many wondered if this was about to be a Halloween Eve nightmare. While there are winners (Low Paid Workers) and losers (Farmers), what does the budget mean for First Time Buyers?
The chancellor has spoken about launching Guarantor Schemes and trying reduce reliance on the bank of Mum and Dad over the last few months but wider programmes to support this are still being fleshed out.
In the short term we see little impact for First Time Buyers due to the budget announcement.
Where we see the first concrete impact on First Time Buyers is April 2025. Through discontinuing the current stamp duty thresholds First Time Buyers will face paying thousands of pounds extra on property over £300,000.
The long term ambition for this government is to improve the supply side of the housing market for First Time Buyers by increasing the amount of homes built. The additional 1.5m homes would in theory make housing more affordable for First Time Buyers, although the road to get to 1.5m extra houses won’t be an easy target to meet.
If FirstTime Buyers were out Trick or Treating today and showed up at Number 10 what would they be getting?
We don’t think your dentist would be too concerned with the contents of the Chancellors goody bag.
