Is the Housing Market Just too Unaffordable? 100,000 Households Priced Out
|Published: 9th January 2018 12:28|
The property market was at the very forefront of Philip Hammond’s budget and while the promise of building 300,000 extra homes per year and removing stamp duty for first time buyers was welcomed, it’s also received heavy criticism.
£44billion has been committed to the cause by UK government but experts are suggesting it won’t be enough.
It’s being suggested that the new figures will only see a tepid growth of the number of affordable homes built, in a market that is seeing 100,000 households unable to buy.
Which is destroying the market, even for those already on the ladder looking to move. The lack of homebuyers out there and the recent news that suggests 146,000 sales fallen through due to stamp duty has meant sellers are having to look towards property buying companies such as Property Rescue, to take their home.
The removal of Stamp duty will help this as thousands of first time buyers will now seek to get on the ladder.
Stamp duty will be scrapped for first time buyers looking to buy a home under £300,000, a move widely praised. But is it too little too late?
Experts are suggesting that all it will do is simply bump up the price of property, meaning the buyer doesn’t win at all and in effect could have to pay 0.3% more on the cost of a home.
The Office for Budget Reponsibility said, The main gainers from the policy are people who already own property, not the first-time buyers themselves.”
The problem is where the market stands today, and how far it has to travel to meet the nation’s needs.
It’s estimated that 55,000 fewer affordable homes have been built to what’s been required each year, with 15,500 being built in London despite 34,100 being needed.
That’s a big gap to fill, and it’s no wonder experts are wary of the recent budget.
While there was plenty to take from that budget, things such as funding for social rent were ignored and that plays a huge part as a cheaper alternative to privately rented properties for those with low budget incomes.
There’s no doubt it will help some, especially with no more stamp duty, but solve a crisis? We could well be debating that for some time to come...