First time buyers received an early holiday gift today as Chancellor Philip Hammond offered a reduction in the stamp duty for first time buyers, thus cutting away some of the cost of getting onto the property ladder. He also announced that there would be slower economic growth for the UK. There were offerings in the plan to boost the economy such as £1.5 billion to cut the waiting times for universal credit claimants, and an injection of £2.8 billion into the NHS.

First time buyers are still struggling to get onto the property ladder in the UK. There are many factors working against them that are too hard to overcome such as saving for a deposit for one. A lot of first time buyers must look to family members, mainly parents, to have enough to put a deposit toward a new home. 

Across the UK there is talk about how many big name lenders will continue to offer low interest rate mortgage loans. This is expected to carry through to the first quarter of next year. Borrowers are now getting a taste of the latest round of interest rate hikes due to the base interest rate hike which took place two weeks ago. Along with struggling wage growth, Brexit uncertainty and higher prices for everyday items are making it difficult to rise above the new norm and flourish.

In October, homeowners took the warnings of a possibility of an interest rate hike to heart. Prior to the November meeting of the Bank of England’s Monetary Policy Committee (MPC) choosing to increase the standard base rate by 0.25% to 0.50%, there was a surge of remortgaging. Homeowners sought out low interest rate deals while available in the hopes of securing their financial health.

Mortgage lenders have fought hard in a competitive market to gain customers and go about making their business viable. However, with historic low interest rates and a stalling housing market, the business of lending hasn’t been profitable for at least one major lender. Nationwide Building Society, Britain’s second largest mortgage provider posted a decline of 4% in half-year profit. 

The Help to Buy scheme, which is set to end in the year 2021, has helped thousands of people afford housing which otherwise could not. The government programme will end in a few years and talk of replacing it with something is already taking place. Many brand new builds were a product of the scheme according to newly released figures. Some home construction firms have seen a significant percentage of new homes financed by the Help to Buy scheme.