Shadow Chancellor Rachel Reeves has warned that Kwasi Kwarteng’s U-turn on plans to scrap the 45p tax rate is too little too late for families facing higher mortgage bills.
This morning the Chancellor confirmed that the Government would shelf plans to scrap the 45p tax rate for high earners.
However, Reeves said it’s “too late for the families who will pay higher mortgages and higher prices for years to come”.
And Vadim Toader, CEO & co-founder of Proportunity, agreed adding that more support for prospective buyers was needed from Government.
He said: “The Government need much more than a U-turn on tax cuts for the most wealthy to mitigate the economic turmoil the mini-budget has created, especially for first-time buyers and homeowners.
“The decision to go back is far too late, with more than four in ten mortgage rates already suspended by lenders and mortgage interest rates skyrocketing.
“To address the backlash hitting the property market, the Government needs to offer prospective buyers support rather than creating barriers.
“Those dreaming of their first home and families with no choice but to re-mortgage will be impacted by the rate rises for years to come, feeling the stretch of not only rising energy bills, but unaffordable mortgage rates.
“Brokers, fintech’s and lenders are working tirelessly to address the lack of Government support, developing unique products to make homeownership not just possible, but affordable.
“The key is understanding that support, outside of Government, is available. It’s time for buyers to take matters into their own hands and be empowered with the innovative solutions coming to light.”
