First time buyers are facing more obstacles in getting onto the property ladder. Recently lenders have responded to the restrictions set by the Bank of England that calls for their mortgage lending to have a considerable number of borrowers taking out mortgage loans that are at a value of 4.5 times their annual income or less. Some of the major lenders have adjusted their own restrictions to reflect that of the Bank and are discarding their previous allowance of 5 times annual income proportions for gaining a mortgage loan.

Deposits are still difficult to come by and many first time buyers are forced to borrow from family members.

Experts are forecasting that there will be a boost to the market with the stamp duty reform. The benefit of the changes made should assist both first time buyers as well as home movers. According to Autumn Statement from Nationwide, the reform will benefit almost 600,000 buyers in England and Wales. The average savings is estimated to be £1,600.

Robert Gardner, Nationwide’s chief economist, said, “The benefits tend to be greater in areas where average house prices are higher and thus a higher proportion of transactions are liable for stamp duty.”

Daniel Bailey, mortgage broker with Middleton Finance, said, “There is potentially also the chance of property prices increasing if sellers think buyers are saving. Generally, the announcement was received very well – brokers had been calling for this for many years.

“Anything that can help first-time buyers with mortgages and reduces costs would potentially make a big difference, and the savings can go towards the deposit, but it is still quite early to see the benefits.”