Govt 'won't make changes to help FTBs'

The Gordon Brown government is unlikely to make any significant changes that will make first-time buyer mortgages more accessible or make it any easier for new buyers to get a foot on the property ladder, according to Firstrung.

Commenting on stamp duty, which has been criticised for adding to already mounting costs for house buyers, Paul Holmes, chief executive of the solutions group, was doubtful that any changes will be made soon.

"The Treasury has enjoyed such spectacular returns in relation to the house price boom. I certainly don't think they will lower their bar or criteria [for stamp duty] to assist one disenfranchised sector," he said.

While costs such as stamp duty are limiting accessibility for buyers, Mr Holmes pointed out that the basic problem is house prices, with inflation meaning that the sums being borrowed on first-time buyer mortgages are constantly increasing.

"The overall issue is affordability," he said. "Simply assisting the first-time buyer with closing costs – which reduces their overall legal bill – is not going to help the fact that a first-time buyer in London is paying over £250,000 for a first-time property."

The Firstrung chief executive said that it would be helpful for stamp duty to be removed altogether for first-time buyers, but he stressed that the government was unlikely to show preferential treatment to a particular sector.

Related Articles