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From Times Online

March 12, 2008

Budget 2008: reactions in the property market

Stamp Duty, first-time buyers, new homes, green measures and fixed rate mortgages

Darling's first Budget: the main points

The Chancellor's speech in full

Winner or loser? Work it out with our budget calculator

It was never expected to be a pulse-raising Budget. The main themes were to be of stability and green measures. But it has nevertheless managed to raise a few heckles amongst commentators in the property market. Here we bring you a round up of who said what about Darling's first Budget.

On first-time buyers and the unchanged Stamp Duty thresholds...

"It is disappointing that Chancellor did not take the opportunity today to address the stamp duty thresholds. The stamp duty thresholds have not kept pace with the increase in house prices for many years now. Stamp duty is hitting more homebuyers where it hurts, in their pockets. It is also becoming an issue again for first-time Buyers." Martin Ellis, Chief Economist at Halifax

“Everyone shares the aim of helping first-time buyers, but there’s a long way to go between what’s been promised and the Government’s timid proposed solutions. The current schemes are only helping a tiny fraction of those people in need, so the Government must aim to significantly widen access to these measures. Until we have a huge increase in the affordable housing stock and a better managed rental sector, some people will continue to suffer in intolerable crowded accommodation. Liberal Democrat Shadow Housing Minister, Lembit Öpik

“The Chancellor has showed no imagination in his first budget for first-time buyers. He appears out of touch with the current state of the housing market and his proposals for shared ownership stamp duty exemptions barley scratched the surface of problems faced by the majority of first time buyers. What does it take for Government to realise that stamp duty reform is long overdue. How much longer with it put its head in the sand instead of making credible policy decisions?” Robert Bryant-Pearson, Chief Executive of Allied Surveyors

“At present, 61% of first time buyers pay stamp duty and the numbers paying higher levels has risen to 11%. The Chancellor is out of touch with the financial pressures facing this group and seems unable to grasp their importance in the housing market.” Chris Coates, Managing Director of Galliford Try Homes

On Stamp Duty and shared equity schemes...

"Stamp duty relief for those in equity share schemes will have virtually no impact on the vast majority of first time buyers. The take-up rate for these schemes has been shamefully low so far – what’s going to change now? Where is the government's commitment to getting first time buyers onto the property ladder?" Ross Bowen, managing director of Connells Survey & Valuation

On capital gains tax and buy-to-let investors...

“It was a somewhat surprising decision from the Chancellor today, to plough ahead with his ill-conceived plans to change Capital Gains Tax, especially considering it was not until very recently that he finally clarified exactly what the changes would actually entail. However, contrary to popular opinion, I don’t believe we are likely to see a large influx of buy-to-let investors rushing to the market to sell all or even part of their current portfolios, just to capitalise on these changes." Stuart Law, Chief Executive of Assetz

On the Government's intention to improve the attractions of fixed rate mortgages...

"We do not believe that these mortgages will necessarily be suitable for all. Many borrowers will continue to have a preference for interest rates that more closely reflect underlying economic conditions. We also believe there is a strong case for greater transparency on mortgage arrangement fees which have risen sharply in recent years. Not only do they mask the relative attractions of individual mortgage products but with regular refinancings, these mortgage fees are proving increasingly burdensome for homeowners." Simon Rubinsohn, RICS chief economist

On the delivery of 200,000 new homes on public sector land...

"The commitment to making public sector land available for housebuilding will only solve part of the land supply issues if we are to achieve the Government’s housebuilding targets. Identifying sites for 70,000 new homes is a drop in the ocean when 2 million additional homes need to be built by 2016. Encouraging the re-use of existing buildings and allowing well managed development on Greenfield sites must also be encouraged if housing targets are to be met." James Rowlands, RICS public policy officer

On incentives encouraging householders to reduce their energy consumption...

“With the average house emitting six tonnes of CO2 each year, the Chancellor’s green initiatives for reducing household emissions are to be warmly welcomed. Currently the average home in the UK has an “E” energy rating* highlighting just how poor we are at being energy efficient in our homes. The £26 million allocated today will allow individuals to make significant investments in their homes and will go a long way towards reducing emissions.” Paul Staley, Managing Director, at Energy Reports and Surveys Ltd