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Spring Budget 2024

If you are hoping to get onto the property ladder, you were probably listening intently to what the Chancellor, Jeremy Hunt, had to say in his Spring Budget last week. Unfortunately, there were no new schemes announced specifically for First Time Buyers (or mortgage holders in general), and there was very little on the property market as a whole.

There will be some additional funding for building new homes, although more needs to be done. £188 million has been allocated for projects in Sheffield, Blackpool and Liverpool, and £242 million will be invested in Barking Riverside and Canary Wharf. It was also announced that more power will be devolved to local areas.

There were a number of measures announced, which could affect your disposable income, and in turn help with meeting affordability for mortgage lenders, or even just with saving a deposit. These include:

  • National Insurance was cut for workers by another 2p, from 10% to 8% – having already fallen by 2p in last year’s Autumn Statement. For the self-employed, this has been cut to 6%.
  • The earnings threshold for child benefitwas raised to £60,000, from £50,000. The limit at which it will be withdrawn will now be £80,000. The aim is to move to a fairer “household system” by April 2026.
  • A guarantee of rates for childcare providers to ensure the Government can deliver the 30 hours of free child-care for children over 9 months old, as promised in the Autumn budget.
  • The Household Support Fundfor families in England was extended for another six months.
  • Alcohol dutywas frozen and the 5p cut in fuel duty was extended.
  • The VAT threshold for small businesses was increased, from £85,000 to £90,000.
  • Capital gains tax on residential property has been reduced from 28% to 24%.
  • Tax Relief for Theatre & Film Industries.

The good news is that lenders have been reducing interest rates slightly in the last few months, and inflation is on track to meet the target of 2% in the next few months. You may still be able to get a mortgage! Whilst there was nothing new in the budget to get excited about, there are plenty of existing options on the market, and some you perhaps weren’t aware of. This is where speaking to an adviser can really help! We can help you find an affordable solution from the whole of the market, and guide you through the full purchase process.

Get in touch on 01702 538800 or email and we will be happy to discuss options with you.