Rishi Sunak unveiled his autumn budget this week and there was very little said about the housing market.
If you’re looking to buy your first home, you might be wondering what this means for you – especially as the average price of properties hit an all-time high of £338,462 in September.
Throughout the pandemic, demand for properties has outstripped supply, pushing up prices and excluding many first-time buyers. However, some market experts believe supply and demand could start to balance out this autumn.
The Office for Budget Responsibility, the official forecaster, has predicted the steep rise in property prices will slow, but won’t necessarily decline. In Savills’ latest forecast, prices are predicted to rise by 12.4% in some areas by 2025, suggesting prices will only get higher.
Jo Thornhill, mortgages expert at MoneySuperMarket, thinks the budget could have done far more to help first-time buyers.
“Arguably, there was an opportunity to tackle the housing crisis as despite a booming market, unaffordable homes continue to remain a problem for people across the nation, with rising bills and the cost of living continuing to increase – especially in London, ” she tells HuffPost UK.
“In turn, this has affected the housing market for first-time buyers, making inner London less and less attainable for those wanting to transition from renting to owning their first home.”
