First time buyers
Experts also noted that yesterday’s statement offered no respite for first time buyers.
James Turford, co-founder of mortgage firm Even said the higher tax burden that has resulted from the Autumn Statement will compound the rising cost of living and make it even more difficult for first time buyers to save for a deposit.
Turford said it was notable that there were no proactive measures included to boost the supply of homes.
“It seems protecting the value of existing homeowners’ property has taken priority over increasing the number of homeowners in our country,” Turford said.
“The only hope is that the statement is so hawkish, bond rates will fall sufficiently to undo much of the damage the mini Budget caused, improving the affordability crunch currently faced by those trying to escape the rental market.”
Moneybox head of personal finance, Brian Byrnes agreed that first time buyers are in need of some stability in the mortgage market following the turmoil that was released by Truss and Kwarteng’s “mini” Budget.
"First-time buyers have experienced significant volatility in recent months as mortgage rates have increased and the number of mortgage deals available on the market has simultaneously reduced,” Byrnes said.
“What the market really needs now is policy stability and as such it is disappointing that a measure introduced as permanent only six weeks ago is actually going to be withdrawn in 2025.
“There is also no clarity at this point as to whether the measure will be phased out or whether we will see another cliff-edge deadline as we saw in 2021.”
Byrnes warned that another abrupt finish to a stamp duty policy would create more stress on first-time buyers who would be left to rush to get their transactions completed ahead of the deadline.
jane.matthews@ft.com
