Conservatives to woo first time buyers

01-Oct-2007

The Conservatives have announced measures designed to help first time buyers in their quest to get onto the housing ladder.

As the calls for a snap election grow stronger, shadow chancellor George Osborne has attempted to counter Gordon Brown's plans for millions more homes around the country by announcing that his party will scrap stamp duty for homes worth under £250,000.

Average house prices are set to break through the £200,000 barrier shortly, according to the latest Halifax House Price Index, with prices in London already over £300,000. The shadow chancellor has admitted that the measures will not help many in the south-east of the country because of higher prices, but insisted that 'nine out of ten' first time buyers would pay less.

"We can help the next generation of first-time buyers realise the dream of owning their own home," Mr Osbourne asserted, according to the Guardian.

The cost of buying a home has risen sharply in recent months, and not just because of rising house prices. A recent study from GE Money Home Lending found that a new home eats up some £11,000 in the first year after moving in, with major outlays including stamp duty as well as legal fees and other moving costs.

However, reductions in mortgage payment protection insurance costs have made paying for a first time buyer mortgage slightly easier, according to Mortgage Introducer.

Nonetheless, with Zoomf.com reporting that stamp duty has risen by 807 per cent over the past decade in London, the Conservatives have now attempted to help address the situation – albeit outside of the capital itself.


First time buyers 'paying 30% of annual income' on homes
http://www.firstrungnow.com/first-time-buyer-news/first-time-buyers-paying-3552.aspx

First time buyers 'paying more than £1,400 in stamp duty'
http://www.firstrungnow.com/first-time-buyer-news/first-time-buyers-paying-3395.aspx

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