Budget 2011: First Buy scheme a drop in the ocean - 23.03.2011

Author: David Whittaker Posted on: 23 March 2011

The pool of buyers that qualify for the government’s First Buy scheme is so small you couldn’t even have a bath in it. If the government thinks this is going to transform the property market they’re mad. The housing crisis will continue and it will be left to the private rental sector to pick up the pieces. Yet there is very little from the Treasury that will be welcomed by landlords and property investors.

The removal of red tape in the process of transforming commercial property to residential is a step in the right direction, so too are the changes to SDLT for bulk residential property purchases, but much more needs to be done to assist those trying to provide a housing safety-net. Lending conditions are easing but are no-where near the level necessary to take the pressure of the rental market. If the government really wants to ease the housing crisis, it should start by solving the immediate problem of getting a roof over people’s heads and that means streamlining and incentivising the process by which landlords and investors can help prop up the market.