In his Autumn Budget, the Chancellor of the Exchequer announced that first-time buyers would no longer have to pay stamp duty on properties costing up to £300,000 – or on the first £300,000 of properties costing up to £500,000.
Abolishing stamp duty for the vast majority of first-time buyers is a welcome move but while it will result in some savings, affordability is still the real issue for many. It might enable a first-time buyer to purchase a new sofa but will it really make the difference between being able to buy a home or not?
The reality is that most first-time buyers cannot get on the housing ladder without significant financial assistance from the Bank of Mum and Dad. Practically all of the first-time buyers we assist at Anderson Harris have had some help with the deposit from their parents. The alternative is to save for many years because the gap between incomes and property prices is simply too great. Until that issue is addressed, home ownership will remain just a dream for many people.
However, lenders are being more flexible towards those with relatively small deposits. Barclays announced last week that it will now lend at up to 95 per cent loan-to-value, which means less time needed to save for that crucial deposit. We expect other lenders to do the same in time.
If you are a first-time buyer, get in touch to find out more about the schemes and products available to you.