Analysis from moneysupermarket.com showed the Chancellor’s Budget cornerstone - the abolition of stamp duty for anyone purchasing their first property under GBP 250,000 - has provided a welcome kick start to the housing market, while the rest of the population have given the Chancellor’s plans a big thumbs-up in principle.
In the week immediately following the Budget, moneysupermarket saw a 15 per cent jump in the number of prospective first-time buyers visiting its mortgage comparison channel. moneysupermarket.com also said this year there has been a 17 per cent increase in the number of 90 per cent mortgages available and the number of 80 per cent loans available is up by a third, with the average rate for first time buyers is 4.79 per cent.
In addition, a poll of moneysupermarket.com customers showed that more than three in four believe it’s fair that the abolition of stamp duty only applies to those buying their first property. However, 18 per cent recognise it is still going to be difficult to buy a property as mortgages are hard to qualify for.
Hannah-Mercedes Skenfield, mortgage channel manager at moneysupermarket.com, said: “There has been much debate over the past week as to what impact Darling’s measures will have on the housing market, and while the jury’s still out on that one, it’s clear that those most affected have welcomed it if numbers to our site are anything to go by. As we approach one of the busiest weekends of the year for house-hunting, the first-time buyer could well be back out after months of hibernation.
“Whilst the majority of our users say the stamp duty cut is a good thing, and recognise that people need help to buy their first home, the reality is that until LTV s and corresponding loan rates improve, the situation remains largely the same. Without a large deposit, you’ll find yourself on a higher rate and that’s if you can get a mortgage at all. It will be interesting to see over the long-term what impact this has.”
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