Blick Rothenberg asked younger members of the firm what they thought about the Chancellor’s Budget and the measures announced to address the issues that concern them the most, and they had their said.
SDLT changes welcome, but still a long way to go
Jonathan Barratt (23), private client assistant, said: “The SDLT changes are in no doubt very helpful, but the maximum benefit for first time buyers is £5,000, whereas to save for a 10% deposit on a flat in London is at least £30,000 if not more. This means £25,000 still needs to be saved and that excludes legal fees and all other costs associated with purchasing property.
“Although these changes are of some use, it remains to be seen whether first time buyers actually benefit from them or the increased demand for properties means that the market almost immediately swallows up the stamp duty benefit.”
He added: “A close friend of mine has recently purchased a property and thus paid SDLT that would not have been due post April; the constant tinkering with SDLT rules may end up upsetting the property market causing uncertainty with many first time buyers who think that a new better incentive will be brought out.
David Kennea (29), private client semi-senior, said: “We were waiting in anticipation to see whether the Chancellor would assist first time buyers. The removal of SDLT for properties up to £300k and a reduction for up to £500k will be seen as a step in the right direction. However, in offering a budget for all generations, this could create unforeseen consequences with negative equity for individuals owning a property in the region of £500k to £550k or more.”
David Shaw (23), trainee chartered accountant, said: “The abolishment of stamp duty for the first £300,000 of a £500,000 property in London will bring a smile to the face of many of my peers who are currently struggling to raise the relevant capital to get onto the property ladder. The reduced upfront cost of purchasing will make saving a deposit more achievable and will allow the younger generation to become first time buyers sooner.”
David Kennea (29) private client semi-senior said: “Every little helps. The railcard measure will make travel costs between UK cities more affordable, which at times can be extremely expensive. However, this is still some way behind our European neighbours and should be made available to all ages. Investment in infrastructure is vital to the UK economy but it should be affordable to all.”
Investment in new homes
David said: “The Chancellor has again set out plans for further investment in the construction of more homes. Successive governments have failed to provide affordable housing. With the injection of further investment, the Chancellor will still need to ensure affordable housing is being built in areas people would prefer to live in.”
The Northern Powerhouse and Midland Engine
David said: “I applaud the Chancellor for attempting to re-balance the economy so it is not as London centric. For many years, graduates have seen that a move to London is necessary for their career prospects, even if they would prefer not to move for social reasons.”
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