First-time buyers are calling on the government to give them more support to get on the property ladder ahead of Labour’s first Budget on 30 October.
A survey of 4,000 aspiring first-time buyers and 500 households who have recently bought their first home surveyed by Moneybox revealed that more than three-quarters believe the government should introduce a package of support measures.
More than 40% want to see more affordable homes built, with first-time buyers given priority access, while 37% want council tax to be reduced for first-time buyers.
Some 29% of those surveyed suggested that developers should be offered financial incentives to build more affordable homes.
Meanwhile, some 27% of buyers want to see financial incentives to prioritise first-timers offered to sellers instead.
Just over 20% of first-time buyers called for the introduction of additional charges and fees on second homeowners and buy to lets (BTLs).
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LISA rules need shake-up
The Lifetime ISA (LISA) has also come under scrutiny by those who are relying on savings accrued through the government-backed account to purchase a property.
Money saved into a LISA can only be withdrawn to buy a house or be used to fund retirement once the saver has turned 60 years old.
A bonus of £1,000 is paid on every £4,000 saved each tax year. However, should someone need to withdraw the cash for any other reason, savers are penalised. Not only do they lose their bonus, but some of their savings as well. There is also a maximum purchase price of £450,000 applied.
Of those surveyed, 23% have called on Labour to increase the LISA property purchase price cap in line with current house price growth and a further 23% have called to reduce or remove the government’s unauthorised withdrawal penalty on LISAs.
Affordability is ‘key obstacle’
Brian Byrnes, head of personal finance at Moneybox, said: “In July, we saw the Labour government take the stage with clear promises in its manifesto to better support first-time buyers and to be a government of wealth creation for the nation.
“Now, three months on, it’s been a long wait for what will unfold in the first Budget of the new government, and it’s understandable that first-time buyers are anxious about whether their needs will be addressed.
“And while there has been much speculation around the policy changes that may or may not make it through on the day, first-time buyers recently received the news that the Chancellor may not be extending the current stamp duty relief beyond March 2025.
“At a time when affordability is already a key obstacle for those looking to get onto the property ladder, this will understandably be a major blow but also feels counterintuitive to the new government’s election promise to build prosperity in the UK.”
