Autumn statement brings mixed message for first-time buyers

Government incentives to attract first-time buyers back to the flat lining property sector may not have gone far enough according to leading West land agents.

Matthew Hiles from CJH Land based in Flax Bourton near Bristol said the new mortgage indemnity measures outlined by Chancellor George Osborne in his Autumn Statement had grabbed headlines but warned that until the finite details of the scheme are made clear  then it is difficult to know how much it will help  people hoping to get on the property ladder.

He said: “While everybody in the housing industry is likely to applaud the new mortgage indemnity scheme for first–time buyers, the devil as always will be in the detail.”

“The biggest obstacle to a resurgence in house building remains  the difficulty that certain sectors of the market face in getting a realistic mortgage offer and until that issue is properly addressed the house building sector will continue in its caution.

“The new mortgage indemnity scheme could work for around 100,000 buyers but it remains to be seen how much this will actually benefit the development industry and the housing market as a whole.’

“Many house builders and property developers are currently very active within the industry but they are going to remain cautious and very selective in what type of property they will develop and in what locations as long as mortgage availability continues to be restricted.

“Their decision making process is still going to be dictated by what type of purchaser is able to secure a mortgage and who has the ability to purchase property. Traditional housing in good locations is still at the top of their agenda.”

 CJH Land act on behalf of many property owners across the region in the sale of their land for residential development and have been instrumental in the disposal of numerous sites and helping building projects go ahead as quickly as possible through flexible and creative reviews of planning permissions and sources of funding.

Matthew Hiles concluded: “The Government’s announcement regarding mortgage indemnities for first-time buyers should be the first step in a concerted programme aimed at jump-starting the housing sector. “

ENDS