October 26th 2023
Mortgage support to be extended ahead of the Autumn statement
Rumour has it that Chancellor Jeremy Hunt is considering extending the governments mortgage guarantee scheme ahead of announcing the autumn budget.
On 22nd November Jeremy Hunt is due to deliver this year’s Autumn statement, which, provides an update on the government’s plans for the economy on the latest forecasts. Arguably, this year’s announcement is the biggest, as the current cost-of-living crisis has sent the country’s financial status on a major downward spiral.
Against this backdrop, former Prime Minister Liz Truss was driven out of parliament after her Chancellor, Kwasi Kwarteng, delivered an Autumn budget that sent the pound tumbling and unleashed chaos markets.
However, ahead of the statement announcement next month, the government have already begun teasing what could be included in it and judging by what has been mentioned so far it seems this budget could be better accepted.
It is understood that Jeremy Hunt has plans to extend the mortgage guarantee scheme which helps first-time buyers get onto the property ladder. The programme, which was first announced in 2021, helps people take out a mortgage with a 5% deposit.
Mr Hunt is expected to extend the scheme for a further 12 months meaning it would progress into 2024.
Alongside this, the government are also alleged to be considering new Individual Savings Accounts (ISA), to encourage future buyers to save for their first home. One example of this is the Help-to-Buy scheme that was introduced in 2015 – the government awarded a 25% bonus on homes worth up to £250,000 in England and £450,000 in London, but Mr Hunt has said that this particular project will not be making a reappearance.
News of the measures that could appear in next month’s autumn statement has come amidst the battle between the Conservative and Labour party to tackle the current housing crisis. During the Labour political party conference, which occurred from 8th – 11th October, Keir Starmer pledged to deliver 1.5 million new properties.
Following this, the recent by election results suggests that the time the Conservatives have in power is limited. It was revealed that the Tories lost two safe seats in Tamworth and Mid Bedfordshire – an area that has been blue for 100 years.
Commenting on the news, a Labour Spokesperson told the BBC: ‘After 13 years of failed Conservative government, the dream of homeownership has evaporated for many working people, while millions of mortgage holders are paying the price of last year’s kamikaze budget.
‘With a transformational package of reforms to the planning system to build 1.5 million new homes over the next parliament, and new measures to help first-time buyers get on the housing ladder, it’s Labour that is the party of home ownership.’
Image: nattanan23