Autumn Statement & First Time Buyers (FTBs) – An Opportunity Missed

The fragile state of the FTB market was highlighted in data shared by Leeds Building Society and Nationwide Building Society in posts during the last week:

·?????? Housing transactions forecast to be down 6.9% in 2024

·?????? Mortgage payments now accounting for 39% of take home pay (median 29.8%)

·?????? Negative real earnings growth in 2023 and only marginally positive growth in 2024 & 2025

·?????? 62.5% of us owned our own home in 2021 (in 2003 it was 71%)

·?????? 426k fewer FTBs over the next 5 years (compared to the 40 year average)

They were united on what the Government needs to do to help FTBs. Suggestions included:

·?????? Supply side measures such as the restoration of mandatory house build targets

·?????? Changes to the LISA rules or the reintroduction of a refreshed Help to Buy ISA to encourage saving

Such a shame then that the Government limited changes to an extension of the 95% loan to value Mortgage Guarantee Scheme to June 2025 in last week’s Autumn Statement. Not good enough!