Skip to content

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


    This is Nisha

    Thank you for your informative article and blog discussion.
    I have been looking for yours blog . This is to good .
    I am very gratefully for sharing this information’s on”Gordon & Rumsby Estate Agents – Market Update – First Time Buyers”………..thanks

    No Estate Agents

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: