The Chancellor Budget announcement that the government is set to help first time buyers has been met with mixed reactions by the property industry in the UK.  

The FirstBuy scheme which will help up to 10,000 people will award loans of up to 20 per cent of the value of new properties. Its aim is also to help create 40,000 jobs in the home building industry boosted by the first time buyers.

Looking at the detail first-time buyers with a joint income of L60,000 or less will be eligible to apply. They need a 5 per cent deposit, while a loan for 20 per cent of the property will be provided jointly by the government and house builder. This leaves lenders to supply a 75 per cent Loan To Value mortgage.

Wendy Evans-Scott, president elect of the National Association of Estate Agents, said: "The Chancellor's help for first-time buyers is a good gesture towards re-starting the stalling property market.

“However, it is nothing more than a gesture - the focus on new build properties, rather than incentivisation across a broader spectrum of property, means there will still be little upward momentum in the market.

The first time buyer situation in the UK is dire and is slowing the market, 2010 saw only 194,600 first-time buyers compared to 2001 figures in which 568,200 first time buyers got on the first rung. Little House Company spokesperson Jane Marr “The government’s announcement indicates how serious the situation is , the assistance is most welcome but I fear it only represents a small, but important, step for a cure to the current situation.

source: www.thelittlehousecompany.co.uk