First time buyer support extended in Autumn Budget

Further details have emerged from the fine print of the Autumn Budget Statement, which Chancellor Jeremy Hunt, MP, announced on 22 November 2023, with positive news for the mortgage guarantee scheme, proptech and new housing developments.

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The headlines from the Autumn Statement included a long-overdue uplift in Local Housing Allowance and minimum wage rises. The Chancellor also stated that households close to new electricity infrastructure (pylons and sub-stations) will receive up to £1,000 per year off energy bills.

Continued help for buyers with smaller deposits

Although a rumoured stamp duty cut did not materialise, there was positive news for first-time buyers with confirmation that the existing mortgage guarantee scheme will be extended until the end of June 2025.

The scheme incentivises lenders to offer 95% loan-to-value mortgages by compensating them for some of their losses in the event of a repossession. For buyers, this means more choice of mortgage products with a 5% deposit.

Boost to new homes funding

The Chancellor promised to invest more than £110 million by the end of 2024 to build 40,000 new homes and boost supply.

He also pledged £32 million to address the planning backlog and develop new housing in cities such as Cambridge, London and Leeds.

An additional £450 million will be allocated to the Local Authority Housing Fund to build around 2,400 new homes.

Support for digital homebuying

The UK Government is providing £3 million for a range of measures to improve the home buying and selling process, including pilots to develop property tech products and to digitise local council property data.