Support for first-time buyers needed in Autumn Statement , Stinton
As the Autumn Statement 2023 approaches Jonathan Stinton, head of intermediary relationships at Coventry Building Society, has called for support for first-time buyers from Government.
There has been speculation about changes to Individual Savings Accounts (ISAs), which could influence how first-time buyers save for their homes.
The Government might be considering simplifying the ISA scheme or introducing new incentives for investment in UK companies.
Another key area is the mortgage guarantee scheme, introduced in 2021 to assist first-time buyers and existing homeowners in securing a mortgage with just a 5% deposit.
This scheme is due to end on 31st December 2023, but there are rumours that the Chancellor may extend it.
Additionally, the Government might tweak ISAs to further aid first-time buyers, possibly by increasing the property value limit for Lifetime ISAs.
Stinton said: “If the property market is going to remain stable it needs to stand on firm foundations – a fundamental element of that is a functioning first-time buyer market.
“Every new buyer who steps onto the property ladder will give it added strength and stability – without new buyers the ladder would be top-heavy and volatile.
“The Chancellor shouldn’t neglect to help those looking to step onto the ladder, and the aim should be building long-term stability.
“Previous incentives have all had an end date and certain caveats, and it’s questionable how helpful they’ve been in the long term – what we really need is something which gives certainty and is geared up to be an integral part of the market.
“Helping first-time buyers with their home should mean helping first-time buyers with any home – buyers shouldn’t be restricted to certain property types to get support.
“It’s up to the Chancellor to decide what that support looks like, but let’s hope he’s learned from past mistakes and delivers something the whole of the property market can stand firm on.”