Autumn Statement 2023 | The Chancellor’s Autumn Statement confirmed an 18-month extension to the Mortgage Guarantee Scheme, designed to help buyers with small deposits secure a home. This move offers vital support to first-time buyers and home movers who may struggle to raise a large deposit.
Originally launched in April 2021, the scheme enables individuals with a 5% deposit to purchase a property. Previously set to end in December 2023, it will now continue until June 2025, offering extended access to low-deposit mortgages.
Under the scheme, participating lenders receive a government-backed guarantee for high-loan-to-value (LTV) mortgages. This acts as a financial buffer, reducing lender risk and encouraging broader mortgage availability.
For borrowers, this guarantee offers peace of mind. It can improve access to competitive rates and improve approval chances, even with a limited deposit. In property repossessions, the guarantee provides partial lender protection against losses.
The scheme is open to a wide range of applicants. It includes first-time buyers, existing homeowners moving to a new property, and those looking to remortgage. Eligible properties must be located in the UK and valued at up to £600,000. Both new builds and existing homes qualify.
For a complete overview of your options, explore our guide to government mortgage schemes. It outlines how the mortgage guarantee scheme works, who can apply, and how to get started.
Permitted Development Rights to Expand in 2024
The Chancellor has announced plans to expand Permitted Development Rights, aiming to increase housing supply across the UK. Under the proposed changes, homeowners may be allowed to convert a single property into two separate homes. This change could open more affordable routes onto the property ladder for buyers and investors. Crucially, these developments must not alter the property’s external appearance.
The proposed reforms will go to consultation in early 2024, with potential implementation later in the year. Homeowners and landlords should watch for updates to understand how these rules might affect future plans.
Investment in Homebuying Technology
As part of broader efforts to modernise the property market, the government is investing £3 million into improving the home-buying and selling process. This funding will support new property technology pilots and help digitise local council property data to streamline transactions and reduce delays. The finer details of this investment are expected to be revealed in upcoming updates.
For a deeper understanding of how tech is shaping today’s mortgage experience, explore our guide on Remortgaging and efficiency tools available to homeowners.
No Changes to Stamp Duty or Lifetime ISAs
Despite pre-announcement speculation, Stamp Duty rates and Lifetime ISA allowances for first-time buyers remain unchanged in this Autumn Statement. This means potential buyers must continue to plan around existing costs when purchasing a home.
First-time buyers should explore available schemes on our First-Time Buyers hub and consider how mortgage protection might offer added financial security during the early years of homeownership.
What This Means for Homebuyers
These policy updates signal continued support for affordable housing and market accessibility. Buyers with smaller deposits may benefit from expanded housing options, while ongoing tech investment could enable faster, more transparent transactions.
With mortgage rates still in flux, it’s essential to review your options and lock in favourable terms where possible. For tailored guidance, we recommend speaking with a professional adviser.
More up the Chancellor’s sleeve?
In the lead-up to the Autumn Statement, many industry analysts and mortgage experts speculated that the Chancellor might delay the introduction of major policies affecting homebuyers and sellers. As a result, anticipation grew across the property sector, with professionals closely watching for potential changes that could impact property transactions.
The absence of immediate announcements targeting buyers and sellers only intensified interest. Many believed that new measures to support those entering or moving within the housing market could still be forthcoming.
This uncertainty generated increased conversation within the industry, with discussions focused on how future interventions could reshape the housing landscape for homeowners, first-time buyers, and investors alike.
Hear From the Industry Leaders
Tomer Aboody, Director of MT Finance, commented that the Chancellor “might be holding back some further help, particularly for the property market, until his next budget.” He continued, “This would provide a further boost to the economy and potentially offer a last chance to increase support before the general election.” Aboody added, “This was a positive statement which will hopefully help the many.”
Nick Leeming, Chairman of Jackson-Stops, noted that the limited focus on housing “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.
Mark Harris, Chief Executive of SPF Private Clients, echoed these concerns, stating, “A more fluid housing market is good for the economy, and more needs to be done to stimulate activity.” He added, “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.”
Key Takeaway
While the Autumn Statement may not have introduced major housing reforms, many believe it left the door open for future support. As conversations continue, homeowners and first-time buyers should prepare for potential changes in 2024.
To discuss how policy shifts could affect your homeownership journey, “Find Mortgage Advisers” for tailored guidance. If you’re a professional supporting clients through the evolving market, consider joining our growing team of experts and “Join our Mortgage network”.
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