House Sale & Purchase

How will the Budget impact First Time Buyers?

6 FEB 2020

How will the Budget impact First Time Buyers?

The answer is no one currently knows!

Sajid Javid has confirmed the next Budget will be held on Wednesday 11 March 2020.

In the Queen’s Speech Boris Johnson promised to make “homes available at a discount for local first time buyers” with speculation that the Government is considering a First Home Scheme as an alternative to Help to Buy.

It is proposed that the Scheme will provide First Time Buyers with a 30% discount, which will be assigned to specific houses and passed on when the homeowners sell to locals. Details as to how this will be funded have not yet been revealed but it is hoped that this will be detailed in the Budget.

In the Conservative Manifesto a radical shake up of the existing Stamp Duty Land Tax system was announced but plans were subsequently dropped and although a surcharge of 3% is mooted for international buyers, it is forecast that changes for domestic buyers are unlikely and therefore First Time Buyers Relief will still apply.

Money Observer also states that First Time Buyers may benefit from plans to allow mortgage lenders to loosen affordability tests encouraging longer-term loans, which cut the cost of monthly mortgage repayments, although the loans will be more expensive overall.

With only a month to go before the Budget, watch this space…

At BBP Solicitors we are experts in advising First Time Buyers and helping them through the complexities of the conveyancing process. If you are a First Time Buyer looking to get onto the property market this year, you should speak with Ikram Dola.

We are currently offering a free initial consultation for all First Time Buyers to help them understand the process of buying a home and the potential risks and pitfalls that they may face.

For further information please contact our office on 01524 401010

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