Spicerhaart is calling on the government to prioritise first-time buyers in its Autumn Budget tomorrow.
The estate agency group, which manages seven brands in England and Wales, including haart, Chewton Rose and Felicity J Lord, wants to see a package of supportive measures introduced, including innovative shared equity schemes, tax reductions on new builds, and rent-to-buy initiatives.
Antony Lark, Spicerhaart joint CEO, told EYE: “It’s now almost impossible for those living in London and the South-East to get a deposit together without parental help, with house prices now more than eight times average earnings, compared to four times average earnings in the mid-1990s.
“If you’re in London, a first-time buyer needs more than £60,000 for a 15% deposit on a starter home. Even lower priced properties in cheaper areas will still need a hefty lump sum downpayment. Who on earth has that kind of money, especially if you’re also paying rent or are single?
“If we don’t combat this issue once and for all, we’ll create a generation of people without a capital asset that they can draw from in later life. The consequences of that are far reaching, particularly when it comes to paying for elderly care or retirement funds for an ageing population.
“Instead of supporting buyers, we’re hearing the government is likely to remove the exemptions on stamp duty, which will mean that first time buyers have to find even more money to take that initial step.
“This government has an opportunity to win the hearts and minds of the future generations by reigniting the drive to ‘own your home’ – but will they do it?”
Colleague and Joint CEO, John Phillips, concurred: “We need a form of Help to Buy. We also need the government to put pressure on the Bank of England to bring down the base rate even further, so that mortgage lenders follow suit. Mortgage rates are still too high at 5%, and we really stick out compared to many other countries across the world.
“It had remained below 1% between 2009 and 2022 – it needs to come back down to these levels so people can afford all these new homes that the government is promising will be built.
“Although the Bank of England finally reduced the rate in August 2024, I personally feel the Governor of the Bank of England has been too slow to bring down interest rates, especially when the European Central Bank and the US Federal Bank have done so in recent months.
“The mortgage lenders are starting to follow suit but with the cost of living still being so high – I can see that instead of having 30-year mortgages, on average, we’ll be heading for lifetime 50-year mortgages if we’re not careful.
“The upcoming Budget offers a crucial opportunity to level the playing field for first-time buyers. We urge the government to act decisively and ensure the dream of homeownership remains attainable for future generations.”
