Budget expected to help first time buyers

23 March 2011

The British Chancellor George Osborne is expected to use today's budget announcement to help thousands of first time buyers get on to the first rung of the property ladder.

In an attempt to revitalise the UK property market and take advantage of the latent demand from first time buyers, Mr Osborne will announce that 10,000 people buying new build homes will receive 20% of the cost from the Government and the builder in low-interest loans to put towards a deposit. The buyer would then need to put up 5% of the cost to secure the deal.

Mr Osborne also expects this change to support 40,000 construction jobs within the UK, further boosting the economy. The scheme is set to total over £250m.

In 2010 the number of first time buyers reached a record low of 347,000, a significant contrast to the 700,000 first time buyers seen in 2004/5. The average FTB is now 37 years old, and recent statistics have shown that first time buyer mortgages fell to just 10,500 in January, a 28% decrease when compared with the same time the year before.

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