The Intermediary – February 2025 - Flipbook - Page 34
"Mum, bad news about our house purchase"
their earnings – an increase of around £66,000
compared with standard mortgage offerings.
Additionally, lenders like Skipton have
introduced track record mortgages, which
market navigate the changes with confidence.”
assess rental payment history to help long-term
Second homes
renters access home loans without requiring a
In addition to pulling support for first-time
traditional deposit.
Mendes calls for a broader approach to
buyers and homemovers, the Government used
the Budget as a means to hike the second-home
supporting first-timers, including more flexible
Stamp Duty surcharge from 3% to 5%, ushering
lending criteria, an expansion of Government-
in yet another blow to an already battered
backed schemes, and increased support for
housing sector.
alternative homeownership models like rent-
Citing the move as a “significant jump,”
to-buy. However, as he rightly notes, the issue
Stinton notes that this change is set to add over
extends far beyond Stamp Duty.
£6,000 in tax to the cost of buying an average
“Addressing the supply-demand imbalance
through targeted housing policy and mortgage
priced home as a second property.
Yet another pressure on landlords does not
market reforms will be crucial in ensuring
automatically benefit prospective homebuyers. In
sustainable access to homeownership,” he notes.
fact, it could have the opposite effect.
Whatever happens with the Government's
“It was a blow to landlords, but also to
house building targets, in the short-term it will
renters, who rely on a healthy private rental
be up to lenders and brokers to help buyers
market,” Stinton says. “Higher rents and
navigate the shifting landscape.
reduced availability of rental homes could be an
Turrell stresses the importance of “open
communication, speedy decisions in principle,
unintended but very real consequence.”
Indeed, landlords, already juggling higher
and certainty” to help maintain market
mortgage rates, stricter regulations, and
confidence, adding: “If the specialist finance
mounting operational costs, now face even
sector can provide those qualities, the market
steeper acquisition expenses.
can start the new tax year post-Stamp Duty
changes on the front foot.
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“It’s vital that lenders and brokers work closely
together in the next few months to help the
The Intermediary | February 2025
The result? Fewer rental properties entering
the market and higher rents for tenants, the very
