Lacklustre Budget... and first-time buyers are totally ignored

THIS week’s Budget saw Chancellor Jeremy Hunt announce that he would abolish Multiple Dwellings Relief. This was launched in 2011 to encourage investment in residential property by cutting the rate of Stamp Duty when buying more than one home in a single or linked transaction.

He is also scrapping the furnished holiday lettings scheme, which gives extra tax reliefs for costs incurred in furnishing holiday lets. The ban on the relief starts from April 2025 and looks set to save the Treasury around £245m a year while multiple dwellings relief will save an estimated £385m a year.

The Government is also cutting the higher rate of property capital gains tax from 28 per cent to 24 per cent, which Jeremy Hunt believes will increase revenue by encouraging more transactions. However, there was no change to the Lifetime ISA (LISA) boost threshold of £450,000 for would-be buyers saving for their first home.

Money Saving Expert Martin Lewis has campaigned for the threshold to be higher given that house prices have increased substantially since the LISA was introduced.

The Chancellor told him that he “wanted to do a big home ownership package but that doesn’t work until property prices are definitely rising” He added that he does want to reform LISAs but “when” is the question?

Henry Jordan, Nationwide’s Director of Home, said: “We are disappointed that the Chancellor hasn’t announced any substantial measures to support first-time buyers.” Timothy Douglas, Head of Policy and Campaigns at estate agency body Propertymark, wanted to see the Chancellor cutting higher rates of Stamp Duty for buy-to-let investors, which he says could boost supply of rental homes.

Labour leader Keir Starmer condemned the government for not tackling planning system reform and not taking urgent action over the lack of affordable housing. The consensus is that it is a lacklustre budget for property