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With the UK property market still pretty stagnant and first time buyers still struggling to get onto the property ladder, the UK Government's Budget speech next week [20th March 2013] has promised to include provisions to help those who are unable to save large deposits or easily qualify for a mortgage. David Cameron, the UK Prime Minister, has stated that the coming Budget will contain vital provisions to help new buyers purchase a property. This guarantee was made at a recent speech given by the Prime Minister on the UK economy, where Mr Cameron said the Budget will aid first time property buyers. The Prime Minister was speaking to engineers in Yorkshire and is reported to have said that the current trend of first time buyer's being in their 30's was against all those that believed in a property-owning democracy. Mr Cameron said he was determined to tackle this issue. There has been small steps forward in helping first time buyers. The Funding for Lending scheme brought in last year has enabled banks to access more funding for mortgage products and as a result the cost of a two year fixed rate mortgage of £100,000 with the buyer putting down a 10% deposit has reduced by £1,000 and also ensured that there is easier access to mortgages. There are now also more higher loan to value mortgage products available, allowing buyers to just deposit 5% of the property value. Low interest rates have also helped borrowers and with Banks and Building Societies being able to access more funding for less cost, there are more products available to first-time buyers. The Prime Minister pointed out these positive moves in the housing market and added he would ensure more was done to help first time buyers. Other Government schemes have also helped the stagnant market and enabled more people to get on the property ladder or upgrade to a larger house. The NewBuy scheme has helped the situation but the Council of Mortgage Lenders has urged the Government to do more by introducing tax breaks for buyers using such schemes. Enabling first time buyers are an important step in the property market. If first time buyers are not able to get onto the property ladder, and are not able to get a mortgage to buy a house, then those looking to upgrade to their second house, have a restricted market to sell to. This affects the whole chain as no-one can sell their house to buy a larger house and move up the property ladder. The Government does appear to have accepted that new buyers need a helping hand and that enabling them to buy a property and get started on the property ladder is a vital component of the whole property market and UK economy. For more information on new homes for sale in the UK, visit the link given.
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new homes for sale, UK property market,
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