Property experts have issued a warning to homeowners after Jeremy Hunt set out his plans for the economy in the Spring Budget today (March 15). Appearing in the House of Commons, the chancellor made a series of key announcements that will affect millions of people across the UK.
One of the main announcements was that the energy price guarantee will no longer be raised to £3,000 from next month, and instead will remain capped at £2,500 until July. It was also revealed that there will be a £63 million fund to keep public pools and leisure centres afloat as well as a new investment which will allow up to 30 hours a week of free childcare to be extended to children over nine-month-old.
But amongst the key changes, property experts were disheartened to hear little to no mention of incentives and improvements to help the property market. It also comes after Martin Lewis has been urging for a change to be made to a property rule which affects many first-time buyers across the country.
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Those who are saving up to buy their first house using a Lifetime ISA can benefit from a free 25 percent bonus on top of what they save each tax year. But the Money Saving Expert founder has recently warned that one of the rules that it requires is 'outdated' as he asked Jeremy Hunt for help in changing it.
Martin recently tweeted: "Lifetime ISAs are no longer fit for purpose for some 1st time buyers & some risk losing money. Today we ask @Jeremy_Hunt to either -Stop withdrawal penalty for those buying homes that no longer qualify or increase value of qualifying house."
"It's time the outdated rules were updated. A £450,00 home limit hasn't moved since launch at 2017 even though house prices have risen 35%. Either up that or drop the penalty."
But after today's Spring Budget was announced, the money-saving guru addressed that no change will be made despite his calls to the government.
Martin tweeted: "ISA rates, and starting rates for savings to be maintain. This also include Lifetime ISAs, sadly no change to the £450,000 threshold (or the penalty)."
Elsewhere experts in the property industry have reacted to the lack of acknowledgment to the sector as they warned that things could get more difficult for first-time buyers and those wanting to move up the property ladder.
Nigel Purves, co-founder and CEO of Wayhome, said: “The nation’s first-time buyers are currently tackling the highest cost of homeownership on record and it’s bitterly disappointing to see the government turn their back on them yet again.
"Having afforded them some brief stamp duty respite during the pandemic, they clearly feel their job is done and have now left them out in the cold to fend for themselves."
Kimberley Gates, head of corporate partnerships at Sirius Property Finance commented: “Rather than address the housing crisis head on, the government has chosen to shy away from the issue, relinquishing any accountability by failing to set new housebuilding targets.
"This hands off approach is sure to see the already inadequate level of new homes reaching the market decline even further. For homebuyers, this means less choice, higher prices and an even tougher task when attempting to climb the property ladder.”
Chris Hodgkinson, Managing Director of House Buyer Bureau, added: “The property market has been treading water since last September’s shambolic mini budget and we were looking to the spring statement for a shot in the arm that would reignite the furnaces of buyer demand and help negate any prolonged period of subdued activity.
"Unfortunately this hasn’t materialised and the nation’s homebuyers have been shown the cold shoulder once again. While we expect the market to hold fairly firm over the coming year, it’s extremely unlikely that house prices will now rally and the pandemic highs of previous years will be resigned to the record books.”
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