Despite the introduction of the Lifetime and Help to Buy ISAs first-time buyers will still struggle with the rising cost of renting, SDL group commercial director Rob Clifford has said.
Despite the introduction of the Lifetime and Help to Buy ISAs first-time buyers will still struggle with the rising cost of renting, SDL group commercial director Rob Clifford has said.
In yesterday’s Budget Chancellor George Osborne repeatedly championed helping the next generation, as he ruled out giving larger investors an exemption from the 3% stamp duty surcharge coming in from next month.
But Clifford said: “The government’s continued quest to manipulate market forces in favour of first-time buyers was a central tenet of the Chancellor’s focus on supporting the next generation but I am far from convinced the measures announced today will have the impact he is hoping for.
“Osborne’s main goal is clearly to stop landlords and buy-to-let investors from driving first-time-buyers out of the market."
He added: “With the private rental sector now so important for 20 and 30 somethings across the country my concern is this move will only serve to increase the price of renting as landlords pass their costs on to tenants.
“This, clearly, would make life even more difficult for prospective first-timers currently renting by increasing their monthly outlay rather than freeing them up to save for the all–important deposit.
“Clearly, the new Lifetime and recently launched Help to Buy ISAs are designed to help in this regard but by the time the government incentives are meaningful will the increase in house prices forecasted wipe out that bonus?
“It is clear that residential property in the UK will remain a bone of contention for many years to come.”
