In his Budget speech Chancellor of the Exchequer, Philip Hammond, said he would be extending the exemption introduced for first-time buyers in last year’s budget to those taking advantage of the scheme which allows people to buy a share of a property and rent the rest of it.
He said the tax break would be retrospective, meaning any first-time buyers who have paid stamp duty can claim a rebate.
But while the announcement was welcomed, it will only benefit a few.
Gemma Harle, managing director of Intrinsic mortgage network, said: “This is a well-meaning change but will have very little impact as few first time buyers purchase property above £300K even with a shared equity. Therefore this change will not go to the root of the problem, which is that there are simply not enough transactions being done further up the ladder.
“While we need to do more for first-time buyers we should also look to those looking to move for the second or third time to free up more housing stock.”
To support homeownership further, the government is launching a call for evidence inviting proposals from investors willing to collaborate with government to deliver a new wave of shared ownership homes.