Last week Chancellor, Philip Hammond announced the end of the Buy to Let scheme which will be dissolved at the end of this year. The scheme was introduced by the former Chancellor George Osborne in 2013 in an attempt to help first-time buyers buy a property with a much smaller deposit - only 5% with the other 15% guaranteed by the government. However Hammond has said that the scheme has set out what it achieved to do, helping more people onto the property market so therefore he plans to drop it. The first element aimed at new-build homes will continue until 2020.
Hammond also stated that since the launch of the scheme more banks have introduced 90% to 95% mortgages, so therefore there is less need for the scheme of which 86,000 people benefited from. In total both parts of the scheme has helped 185,000 people buy a home, with 150,000 of those being first time buyers.
It’s not necessarily bad news for first time buyers, but if you are looking at accessing the scheme you will need to move quickly. Interest rates are at an all time low and the number of properties coming on to the market has increased, making the housing market the most attractive it has done for several years for those people looking to buy their first property.
If you would like to find out more information about buying your first home, then why not pop into your local branch of Intercounty or call our team on 01279 655248.