FirstBuy Direct Scheme
Intermediary Mortgage Lenders Association (IMLA): “The government must see FirstBuy Direct as one of a number of mechanisms to help the mortgage and housing market because it will have little impact in isolation.
“We would like to see this scheme used hand-in-hand with other initiatives, such as a review of the Stamp Duty threshold.”
The British Property Federation (BPF): “This package broadly makes sense, because it targets home deposits, and is about as much as the government could realistically do in current circumstances.
“We would like to have a seen a refined policy which targets such aid at homes yet to built or completed, rather than a means of house builders selling unsold stock.”
The Royal Institution of Chartered Surveyors (RICS): “Although this is not a solution to all housing problems this could represent the first step towards a vibrant and sustainable property market and assist the economy recovery.”
The National Association of Estate Agents (NAEA) said: “The help for first-time buyers is a good gesture towards re-starting the stalling property market however it is unlikely that they will provide the kick-start that the housing industry badly needs.”
Andy Hill, chief executive of affordable housing company Hill Partnerships, said: “I am sceptical about the long term impact of the scheme and believe it is unlikely to make any difference to the fact that banks remain stubbornly unwilling to lend.
“Buyers without sizeable deposits continue to be penalised, even though in many cases they are perfectly credit worthy, as lenders hide behind codes of conduct and strict terms which are designed to make it impossible for first time buyers to secure mortgages.”
James Bawa, chief executive of Teachers Building Society said: “We welcome any initiative designed to help people to buy their first home.
“However, as the financial support for the FirstBuy scheme is pledged for just one year, and it applies to new-build houses only, we would urge the government and other interested parties to work together on more sustainable, long-term support for this area of the market.”
Stamp Duty and tax
British Property Federation (BPF): “Stamp Duty charged on residential properties will be an important boost for the private rented sector and we hope will tip the balance in encouraging institutional funds into building homes. Using the average price is fairer and a welcome measure of support for those in need of rented housing.”
The Council of Mortgage Lenders (CML): “Today’s indirect tax announcements will marginally soften the impact of significant fiscal cuts for household finances, but do not alter our forecast of a challenging year for households and the housing market this year.”
The National Association of Estate Agents (NAEA) said: “The review of Stamp Duty is a positive step and we believe the Chancellor is right to address planning laws and change of property use.
“However, without the ability to overcome the substantial capital barriers that are currently restricting property ownership, the market will stagnate in 2011.”
LSL Property Services said: “The Chancellor’s reform of Stamp Duty for bulk purchases may well provide a shot in the arm for institutional investment into private rented sector which is excellent news.
“By allowing multi-property landlords to face mean value Stamp Duty rather than aggregate, the government is reducing the financial barriers placed in front of corporate investors and stimulating increased participation from big players.”
David Whittaker, managing director of brokerage Mortgages For Business, said: “In theory, this is just the sort of the thing the government should be doing to help the professional landlord. In practice, we need more details to determine whether this measure is an effective incentive.
“It’s important to establish whether this new structure will be imposed purely on properties bought in bulk in a single location, such as a block of flats, or if it will include a situation where a landlord buys multiple properties in different locations.”
Support for Mortgage Interest (SMI)
The Building Societies Association (BSA): “The 12-month extension of the temporary changes to the eligibility criteria for SMI is a sensible one. SMI provides an effective alternative to other government support for struggling homeowners.
“However, we believe an overhaul of SMI could make a significant difference to borrowers in financial difficulty, without significantly increasing the cost to the taxpayer.”
The National Landlords Association (NLA) said: “The stamp duty concessions on bulk purchases will encourage landlords to invest more in residential property, thus providing much needed housing in the private rented sector.”
Eric Stoclet, chief executive of Crown Mortgage Management said: “By continuing with the amended SMI, George Osborne has admitted times remain tough for borrowers. Although the number of repossessions has been falling since its 14 year peak in 2009, this has been largely thanks to ultra-low interest rates and the forbearance of lenders.
“During the coming months, the SMI will prove a vital tool in the effort to keep repossessions from trending upwards again.”
Employment
The Federation of Small Businesses (FSB): “The government has committed to cutting red tape, but we believe new employment laws will still come into force in this year, which could hinder businesses from taking on staff.
“The biggest opportunity missing from this Budget is by not extending the National Insurance Contributions holiday nationwide to existing businesses, which would really have provided incentives for small firms to take on more staff.”
Retirement and Equity Release
Andrea Rozario, director general of Safe Home Income Plans (SHIP) said: “Today’s Budget shows the Chancellor’s commitment to helping the UK’s more needy citizens, be they first-time buyers or pensioners, which is to be commended.
“The single-tier state pension of £140 will simplify the hugely complex benefits system and mean that those who choose to take out equity release will have a clear idea of how their income might be impacted.
“However, while this move will support the less well off pensioners, the government’s recent emphasis on the importance of financial self-sufficiency in retirement is likely to see more people looking for other sources of retirement funding.”
