The Autumn Statement really was a missed opportunity, particularly as far as first-time buyers are concerned.
The Chancellor could have made more effort to help those struggling to get on the ladder, making it easier and cheaper to buy, perhaps via stamp duty reform. There has been no replacement for Help to Buy and while we welcome the extension of the Mortgage Guarantee Scheme by 18 months, this only helps a relatively small proportion of movers because loans are restricted to four and a half times income and not all lenders participate.
The main issue for the housing market and wider economy is that transactions are 20 per cent down this year, with home sales set to be at the lowest level in a decade. This impacts not just those working directly in the industry – the estate agents, mortgage brokers, removals people etc – but also many tradespeople. A more fluid housing market is good for the economy and more needs to be done to stimulate activity. With one more Budget in the spring and possibly another autumn statement before a general election, the Chancellor may be keeping his powder dry on the housing market but we urge him to take action next time around.
