The Budget: "Get Britain building again"



March is always a significant month for peoples' finances with the Chancellor delivering the annual budget. There were the usual winners and losers, with a notable 1p cut for beer lovers! But what did the budget mean to the property market?

 

The Chancellor pledged to "get Britain building again." His plan for doing so; provide £500m for small house building firms and also provide £150m in funding to support self-builders. The Government is also set to reform the current planning system and sign deals across the country to boost building. One area that is set to see change sooner rather than later is Cambridge as the Government signed a new funding deal for building in the city last month.

 

Although this may seem great for the economy going forward, you may be thinking this has little impact on you and your mortgage. Whilst this may be true the Chancellor did confirm the suspicions of many and extend the Help to Buy equity loan scheme until 2020.

 

In the time since the scheme was launched last April undoubtedly there has been a significant improvement in the property industry. The scheme itself has been taken up by 7,000 people, however whether the scheme has had a direct impact or not is still up for debate. Some have argued that the market would have improved anyway, whilst others suggest that the scheme is in fact moving us towards a housing bubble.

 

Despite the fact both of these statements have their own merits, certainly this move from the Chancellor should be welcome news for homebuyers and construction workers. The move ensures the need for new homes going forward and affords the opportunity for many to review their finances and identify a long term plan for getting onto the mortgage ladder.