Steve Barber, Managing Director of Bridging Finance Solutions, reacts to this year’s budget:
“There are undoubtedly several key announcements that will support and indeed bolster the continued recovery of the property market.
“The extension of stamp duty will prolong the recovery of property prices as well as maintaining market activity. A combination of this stimulus, not enough stock and high demand, will push up property values further. The stimulus to the market already seen during the stamp duty holiday goes some way to demonstrate what a market constraint this is tax is.
“The gradual tapering of the return to the £125,000 Stamp Duty nil rate band by 1 October should also help avoid the cliff edge that many feared.
“Notably, 5% Mortgage deposits under the Government Mortgage Guarantee scheme will allow first-time buyers to accelerate purchases as they save for deposits earlier, providing for increased market stimulus in the coming months.
“However, this will require supporting housing supply as well as demand with the previous scheme ending in 2016, resulting in a rise in property prices as supply was not adequate. Getting that balance will drive the success of the scheme for first-time buyers getting on the ladder, as well as fit-for-purpose planning reforms which will heavily influence this strategy.
“Overall, these are all positive moves by the Chancellor which will give the sector the boost it needs to continue on its road to recovery following an undoubtedly challenging period for all.”