First-time buyers and the Budget – comment from Access Financial Services

30 October 2024

Here are some thoughts from Nick Jones, mortgage services and marketing director at Access FS, ahead of today's budget.

Nicholas Jones, mortgage services and marketing director at Access Financial Services, said: “One certain outcome from Chancellor Reece’s first Budget is that customers are going to be reassessing their financial situations. Every homeowner and first-time buyer are likely to be affected in some way, so it is important that skilled and empathic advisers are on hand to support their clients and review their short and long-term plans.

“For first-time buyers, stamp duty support is set to be stamped out in April 2025. We’re hoping that Reece’s Budget will reverse this decision and maintain the current threshold of £425,000 for zero stamp duty for first-time buyers. That said, having to find a deposit disproportionate to salary is the key limitation for first-time buyers who are already paying high rents.

“Potential rises in capital gains tax could also lead to more landlords exiting the market, which will further push up rents that are already being squeezed. This could then push renters out of the market, leaving them in need for a mortgage solution that puts them first, such as a zero-deposit mortgage.

“Ultimately, what we need from the Chancellor are changes that support strong consumer and investor sentiment in the UK economy generally – that, in turn, will drive the mortgage industry.”