The autumn statement
The Chancellor has announced an 18-month extension to the mortgage guarantee scheme in his Autumn Statement. This aims to support prospective homeowners with small deposits.
Initially introduced in April 2021, the scheme helps buyers with a 5% deposit to purchase property. It was set to conclude at the end of this year but will now run until June 2025.
Under the extended scheme, lenders can secure a guarantee on loans with minimal deposits. This provides a safety net for those struggling with mortgage repayments.
Furthermore, this safeguard ensures that lenders are protected against potential losses. This applies in the unfortunate event of property repossession.
The mortgage guarantee scheme is inclusive. It caters to first-time buyers, home movers, and those remortgaging. This applies to new and existing properties valued up to £600,000.
Moreover, a comprehensive guide on government schemes for those with small deposits is available. This guide includes details on how the mortgage guarantee scheme operates.
Interested parties can refer to this guide for more information.
The Autumn Statement | Permitted Development Rights to be expanded
The Chancellor has proposed changes to Permitted Development Rights to enhance housing options. This expansion would create two homes within one property, increasing the housing supply. However, such development must not alter the property’s external appearance. This change is set for consultation early next year, with implementation in 2024.
Moreover, the government has allocated £3 million to improve the home-buying and selling process. Although details are yet to be disclosed, the funds will support property technology pilots and digitise local council property data.
Despite speculation, the Autumn Statement did not change Stamp Duty rates or Lifetime ISAs for first-time buyers. Homebuyers and property owners should explore ways to minimise costs, such as securing favourable mortgage rates. Seeking professional advice is strongly recommended for tailored, cost-effective solutions.
In conclusion, the Autumn Statement introduces significant property market developments, supporting those with modest deposits and expanding housing options. As the property landscape changes, staying informed and seeking professional guidance is crucial for navigating home buying and ownership.
The Autumn Statement | More up the Chancellor’s sleeve?
Analysts and industry experts speculated that the Chancellor might defer announcing policies for buyers and sellers. Consequently, anticipation lingered as the industry eagerly awaited potential measures impacting property transactions.
The delay in unveiling specific initiatives for buyers and sellers heightened interest in the Autumn Statement. Observers speculated about targeted interventions to address the evolving needs of those navigating the property sector.
This conjecture added intrigue to the announcement, fueling discussions on its potential implications for homebuyers, sellers, and the broader property market.
Tomer Aboody, director of MT Finance, said Hunt “might be holding back some further help, particularly for the property market, until his next budget”, adding: “This would provide
a further boost to the economy and potentially offer a last chance to increase support before the general election.”
“Overall,” Aboody said: “This was a positive statement which will hopefully help the many.”
Nick Leeming, chairman of Jackson-Stops, said the minimal attention to the housing market provided an “important platform for the new Housing Minister, the second in less than a year, to make a difference to the property sector”.
Mark Harris, chief executive of SPF Private Clients, added: “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.”
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