United Kingdom

Details

  • Industry: Infrastructure, Building and Construction
  • Type: Press release
  • Date: 22/03/2013

‘Help to Buy’ mortgage scheme ‘potentially game-changing’ for UK housebuilding sector 

 

Jan Crosby, KPMG’s Head of Housebuilding, comments on the new ‘Help to Buy’ scheme by the Chancellor in his last budget:

 

“The Budget announcement on ‘Help to Buy’ is a potentially game changing policy for the sector.  By broadening support to second and third time buyers, many of whom are equity constrained, it will create additional demand for new build properties. 

 

“This additional demand is likely to facilitate some growth in new build transaction volumes, but is also likely to have an inflationary effect – both positive for housebuilders.

 

“The new policy also reflects a change of emphasis towards delivering additional funding support to encourage housing transactions rather than attempting to improve affordability through increased supply of land and new housing volumes. However, it remains to be seen whether the new policy will help to address the issue of affordability. Most UK housing transactions are being made in the second hand home market and that’s where prices are being set. It will be difficult to address this issue through policy changes aimed primarily at a small segment of the market – in this case the  ‘new built home market’.

 

“Given much of the nation’s wealth is tied up in housing and those not on the housing ladder still want to get on it, this pragmatically helps people get what they want – more ability to move house or buy a house and some house price inflation as a by-product.  That might actually create a feel good factor that acts as a multiplier in terms of broader consumer spending. It does not however fix the affordability issue and potentially creates a further reliance for ongoing support to the sector.

 

“As always the devil is in the detail and at the moment it is unclear precisely how the scheme will be administered. Key will be to ensure to strike a balance between simplicity and delivering the policy objectives.”

 

-ends-

 

 

Media Contact:


Katrin Boettger, Senior PR Manager 

Tel: +44 207 896 4232 / 0782 4475168

Email: katrin.boettger@kpmg.co.uk

 

About KPMG:

 

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff.  The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  KPMG International provides no client services.

 

 

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