Just Mortgages comments on The Budget
07 March 2024
Just Mortgages is one of the largest mortgage brokers in the UK, with more than 650 advisers working across both employed and self-employed divisions. It is part of Spicerhaart, the UK’s largest independent estate agency and property services group.
Carl Parker, national director at Just Mortgages, said: “It is really disappointing that we didn’t see much in the way of support for the housing market – particularly for first-time buyers. While tax cuts should in theory keep more money in people’s pockets, sticky inflation and sustained cost of living pressures still make it much harder for people to save the necessary deposits and meet tougher affordability requirements.
“Given the government's position in the polls and with an election on the horizon, it seemed like a great opportunity to bring back Help to Buy, or something similar that includes second-hand homes. Like the scheme or not, it worked wonders in getting people onto the property ladder. Lenders loved the scheme and stand ready to dust it off once again - so did developers who couldn’t move fast enough to meet demand. Let’s not forget the healthy profit made by the Treasury too.
“Changes to capital gains tax have been introduced to increase transactions, although it’s unlikely to sway those portfolio landlords invested in property for the long-term. It could push many of those amateur or accidental landlords hit hardest by increasing rates and costs to dispose of properties. Whether this will boost supply where it is actually needed is still up for debate, with the more likely scenario being increasing supply pressures in an already stretched rental market.
“We can take encouragement from the OBR forecast that inflation will fall below the two per cent target within months. This positive news should support the argument for the Bank of England to finally making cuts to the base rate. This should bring some heavy lifting to the efforts of lenders to improve mortgage rates and will of course have a positive impact on affordability too.”
