Budget boost for first time homebuyers

I have been pressing the case of first time homebuyers, who find our local house prices dear. The Conservatives promised a discount on  homes for first time buyers under a new scheme which will cut the costs for developers as long as they pass on the advantage to the buyers.

Now the  budget adds help with saving for a deposit. For every £200 of deposit saved the  government will top it up with £50, up to a total of £3000 on £12000 saved. That should take some of the waiting out of wanting and help people to save more quickly for the deposit.

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3 Comments

  1. A different Simon
    Posted March 19, 2015 at 9:37 am | Permalink

    When you have a chronic shortage like we do it’s easy for vested interests to puff up prices because the supply is artificially constrained so the market is disfunctional .

    As lifelogic pointed out , you either increase the supply of houses or the number of people . The Govt isn’t willing to do either .

    I didn’t expect Osborne to levy penalties on vacant houses or undeveloped lots but that would at least help the supply side .

    Buyers will still have the same amount of surplus cash each month which is what the mortgage providers are after .

    This suggests that house prices will go up by the same amount the tax payer puts in . Thus the supposed improvement will merely be cosmetic and will not translate into actual help for first time buyers .

    In common with many benefits , this one requires the Govt to penalise one sector in order to favour another .

    Why should renters have to subsidise first time buyers ?

    • A different Simon
      Posted March 19, 2015 at 9:37 am | Permalink

      typo …. or REDUCE the number of people

  2. Cliff. Wokingham.
    Posted March 19, 2015 at 8:31 pm | Permalink

    I am sure that would be first time buyers will find the penny a pint saving a great help too!

    One Penny off the price of a Three Pound pint equates to a One Third of a percentage cut….I cannot imagine ANY publican bothering to pass that saving on. Is such a duty cut really worth while or worth the effort to implement it? Does it show nothing but contempt for both the struggling pub trade and those who like an odd beer in a pub once in a while?

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    John Redwood won a free place at Kent College, Canterbury, and graduated from Magdalen College Oxford. He is a Distinguished fellow of All Souls, Oxford. A businessman by background, he has set up an investment management business, was both executive and non executive chairman of a quoted industrial PLC, and chaired a manufacturing company with factories in Birmingham, Chicago, India and China. He is the MP for Wokingham, first elected in 1987.

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