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Gordon & Rumsby Estate Agents – Market Update – First Time Buyers

November 11, 2011

Gordon & Rumsby Estate Agents – Market Update – First Time Buyers.

Julie Gordon welcomes a statement by the CBI today, calling for help for first time buyers.

The Confederation of British Industry issued a press release today urging the government to adopt plans to address the state of the property market. A buoyant property market will build growth and economic recovery for the UK.

The CBI suggests that there is a particular need to get first time buyers into homes, as this will kick-start the market from the bottom. The number of first time buyers in 2010 was less than half the amount in 2006. Their suggestions are to:

  • Offer low deposit mortgages: Without returning to risky lending practices that helped to ruin the economy, the CBI believes that a Mortgage Insurance Guarantee (MIG) would help to insure lenders and house builders (in a shared risk scheme) from losses if a buyer defaults on the mortgage.
  • Allow Buyers to access their pension pots: This would allow buyers to borrow from their pension savings enabling them to raise additional funds towards a deposit.
  • Re-evaluate Stamp Duty: Currently first time buyers are exempt from paying Stamp Duty up to a threshold of £250,000 but once they have passed that threshold it kicks in at 3%. Therefore a first time buyer buying a house for £250,000 pays no stamp duty, yet if the house is £251,000 the tax bill is £7,530! Whereas buying a first house under $250,000 is feasible in some parts of the UK, it is less easy for those in the south east.

For a full account of the proposals by the CBI click here.

You can contact Julie at the Gordon & Rumsby ‘Contact Us Page‘ or by calling 01460 30888.

One Comment leave one →
  1. November 14, 2011 11:20 am

    hi

    This is Nisha

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    I am very gratefully for sharing this information’s on”Gordon & Rumsby Estate Agents – Market Update – First Time Buyers”………..thanks

    No Estate Agents

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