The real reason that the budget is great news for first-time buyers

The Budget contained some great news for struggling first-time buyers. I don't mean the latest shared ownership scheme, which they should simply ignore. I'm talking about a tax change that could transform the private rental sector.

George Osborne announced a new scheme to help out buyers having trouble getting their hands on deposits and hence houses. Under the Firstbuy direct scheme you have to save up a 5% deposit. Then the government and a housebuilder will both put up another 10% for you, via an equity loan on a very low interest rate. That gives you a total of 25% enough to make sure you can get a well-priced mortgage. According to various employees of estate agency Kinleigh, Folkard & Hayward this is "great news" for property companies and "great news" for first time buyers.

I'll go with the first any buyer is a good buyer for a house builder these days. But the second? No. House prices are too high and they will come down in real terms at the very, very least. So it doesn't make any sense for the young to buy them now. They are much better off saving and waiting regardless of the various bribes chucked out by interested parties.

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Merryn Somerset Webb

Merryn Somerset Webb started her career in Tokyo at public broadcaster NHK before becoming a Japanese equity broker at what was then Warburgs. She went on to work at SBC and UBS without moving from her desk in Kamiyacho (it was the age of mergers).

After five years in Japan she returned to work in the UK at Paribas. This soon became BNP Paribas. Again, no desk move was required. On leaving the City, Merryn helped The Week magazine with its City pages before becoming the launch editor of MoneyWeek in 2000 and taking on columns first in the Sunday Times and then in 2009 in the Financial Times

Twenty years on, MoneyWeek is the best-selling financial magazine in the UK. Merryn was its Editor in Chief until 2022. She is now a senior columnist at Bloomberg and host of the Merryn Talks Money podcast -  but still writes for Moneyweek monthly. 

Merryn is also is a non executive director of two investment trusts – BlackRock Throgmorton, and the Murray Income Investment Trust.