Chancellor Rishi Sunak is set to deliver his Budget on Wednesday 3 March but already a number of measures in his statement to MPs have been trailed in advance.
Most notably in the property market it is expected that a mortgage guarantee scheme will be announced that will encourage home ownership and help buyers with deposits of just 5% to get on to the property ladder.
The coronavirus pandemic has meant there are now few low-deposit mortgages available, the Treasury said, with just eight on the market in January. They are often seen as riskier by banks as they are more vulnerable to negative changes in property prices – meaning people hold more debt than their home is worth. Under the scheme, the government will offer to take on some of this risk. The new scheme is not expected to be restricted to first-time buyers or new-build homes, but there will be a £600,000 limit.
In addition, Sunak is reportedly considering the extension of a series of Covid support measures currently due to come to an end, including the stamp duty holiday.
