Rightmove comment and data in reaction to mortgage guarantee scheme + stamp duty
Rightmove comments on Labour’s proposed mortgage guarantee scheme and the Chancellor’s comments on Stamp Duty.
Tim Bannister, Rightmove’s property expert said: ‘We welcome policies and innovations which are trying to help more first-time buyers onto the ladder. However we know from our own research that policies like the mortgage guarantee scheme have limitations, and are only able to help a very small pool of future first time buyers that fit specific requirements. One of the biggest barriers for first time buyers is being able to borrow enough from a lender, which a mortgage guarantee scheme doesn’t address.”
Matt Smith, Rightmove’s mortgage expert said: ‘We think there is a greater opportunity for the next government to review the mortgage affordability criteria in a responsible way. Longer-term solutions need to be prioritised over short-term fixes to help more first-time buyers to get onto the ladder, especially those who are trying to buy on their own. Whilst continuation of this kind of support, and making it attractive to lenders to offer it is helpful, it should be the first step amongst many in helping first-time buyers.”
Mortgage Guarantee Scheme
| Region | Percentage of homes available to two buyers on an average salary, with a 5% deposit | Average first-time buyer asking price | 5% deposit needed for average first-time buyer home |
| East Midlands | 58% | £192,150 | £9,607 |
| East of England | 41% | £273,517 | £13,676 |
| Great Britain | 69% | £228,003 | £11,400 |
| London | 24% | £507,508 | £25,375 |
| North East | 75% | £132,060 | £6,603 |
| North West | 62% | £173,299 | £8,665 |
| Scotland | 76% | £141,069 | £7,053 |
| South East | 35% | £296,986 | £14,849 |
| South West | 37% | £258,296 | £12,915 |
| Wales | 58% | £187,797 | £9,390 |
| West Midlands | 55% | £194,292 | £9,715 |
| Yorkshire and The Humber | 66% | £174,638 | £8,732 |
Stamp Duty
- The average stamp duty that a home-mover (not a first-time buyer) pays is currently £6,256 (based on the average asking price of £375,131)
- 28% of homes on the market are currently exempt from stamp duty for all home-movers (excluding second homes, anything £250,000 or below)
- 62% of homes on the market are currently exempt from stamp duty for first-time buyers (anything £425,000 or below)
- The percentage of properties that are on the market by the current different stamp duty bands are all follows:
-
- £250,000 and below – 28% of properties
- £250,001 to £925,000 – 63% of properties
- £925,000 – £1.5 million – 5% of properties
- Anything above £1.5 million – 3% of properties
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