There has been lots of speculation over how the Autumn statement could affect the UK property market as 2024 rapidly approaches. The Autumn Statement is important because it provides an update on the government’s plans for the economy.
A point of contention has been what the government’s plans for their mortgage guarantee scheme were to be.
The scheme enables potential buyers to get a mortgage worth 95% loan to value (LTV) on properties worth up to £600,000. This means that buyers only need a deposit of 5%.
For example, a potential home buyer looking to take out a mortgage on a property valued at £100,000 would only need a £5,000 deposit.
The mortgage guarantee scheme was first introduced in the 2021 budget and has helped reduce the initial financial burden of taking out a mortgage.
The scheme has proven greatly popular with first-time buyers, with around 86% of those using the scheme being first-time buyers.
The scheme was due to end at the end of December 2023 after being extended at the end of 2022, so many hopeful property buyers have been uncertain whether they’d still be able to take advantage of the scheme.
Autumn statement reveals mortgage guarantee scheme’s future
Weeks of speculation came to an end as on the 22nd of November, the Autumn statement was given by Jeremy Hunt to the House of Commons.
In the statement it was announced that the government would extend the mortgage guarantee scheme by 18 months.
This gives hopeful first-time buyers until the end of June 2025 to take advantage of the scheme.
The extension has naturally been welcomed by first-time buyers across the UK. The mortgage guarantee scheme reduces the initial financial burden first-buyers face when they first enter the property market.
Paul Nurding – Managing Director of Embrace Financial Services, commented:
The extension of the scheme is a significant development and will provide relief to those who have been saving up for their first mortgage over the last few years.
Therefore now would be a good time to consider your home ownership options, as the Office for Budget Responsibility (OBR) is forecasting that house prices could fall by 4.7% next year in 2024.
That means if you’re looking to sell it could be advantageous to list your property before the end of the year, and if you’re looking to buy you could start your search now in preparation for the new year.
Whether you’re looking to buy or sell, our local expert advisors are here to help you explore all your options. Don’t hesitate, get in touch with your local branch today.
Your Move E-Marketing Executive
