The autumn statement
In a bid to support prospective homeowners with small deposits, the Chancellor has announced an 18-month extension to the mortgage guarantee scheme in his Autumn Statement. Initially introduced in April 2021 to facilitate property purchases for buyers with a 5% deposit, the scheme 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, providing a safety net for those struggling with mortgage repayments. This safeguard ensures that in the unfortunate event of property repossession, lenders are protected against potential losses.
The mortgage guarantee scheme remains inclusive, catering to first-time buyers, home movers, and individuals remortgaging for new and existing properties valued up to £600,000. A comprehensive guide on government schemes for those with small deposits, including details on how the mortgage guarantee scheme operates, is available for interested parties.
The Autumn Statement | Permitted Development Rights to be expanded
In a move to enhance housing options, the Chancellor also unveiled proposed changes to Permitted Development Rights. The suggested expansion would permit the creation of two homes within a single property, thereby increasing the available housing supply. The caveat, however, is that such development must not alter the property’s external appearance. This potential change is slated for consultation early next year, with implementation expected in 2024.
Complementing these adjustments, the government has allocated £3 million for various initiatives to improve the home buying and selling process. Although specific details are yet to be disclosed, the allocation is earmarked for measures, including pilots for property technology products and the digitization of local council property data.
Despite widespread speculation, the Autumn Statement did not introduce alterations to Stamp Duty rates or address potential reforms to Lifetime ISAs for first-time buyers. This emphasises the need for homebuyers and property owners to explore avenues to minimise costs, such as securing the most favorable mortgage rates. Professional advice is strongly recommended for individuals seeking tailored, cost-effective solutions based on their unique circumstances.
In conclusion, the Autumn Statement brings about significant developments in the property market, extending vital support for those with modest deposits and proposing measures to expand housing options. As the property landscape undergoes these changes, staying informed and seeking professional guidance becomes paramount for individuals navigating the intricacies of home buying and ownership.
The Autumn Statement | More up the Chancellor’s sleeve?
Speculation was rife among analysts and industry experts, suggesting that the Chancellor might defer the announcement of policies tailored for buyers and sellers later. Anticipation lingered as the industry eagerly awaited potential measures that could impact the dynamics of property transactions.
This delay in unveiling specific initiatives for buyers and sellers prompted a heightened interest in the Autumn Statement. Observers speculated on the possibility of targeted interventions to address the evolving needs of individuals navigating the property sector. The conjecture added an extra layer of intrigue to the announcement, fueling discussions on the potential implications for prospective 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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