Budget 2021 Reaction

Budget 2021 Reaction

Following the Budget announcement, Howard Mortgages provide initial thoughts with regards to the mortgage market.

There were very few rumours related to housing prior to this budget and there have been no huge surprises. However, the government has committed to a generous £24billion multi-year investment programme aimed at delivering affordable homes and helping tackle the cladding problem in the wake of Grenfell tragedy.

The announcement that the government has set aside £1.8bn to plough into funding the delivery of more new homes is welcome, considering house prices are at record levels. The stamp duty holiday brought in during the height of the pandemic has perhaps worked too well at encouraging people into the property market and has caused a scramble for limited stock.

The holiday has now come to an end, but prices have seen double digit growth in just one year and may continue to stay high unless more housing stock is brought to market. The funding will encourage developers to create more housing on brownfield sites and help to flood the market with more affordable homes that will give first time buyers a chance to get on the housing ladder after being shut out by prices rises and a dearth of high loan to value mortgage deals.

Over the past year, the government’s 95% mortgage guarantee scheme has enabled more of these types of mortgage to come to market, but savers still face an uphill struggle to get the money together for a deposit on their first house.


Never before have mortgage rules been so confusing – yet financial advice so critical as it is today. An expert mortgage broker will be able to guide you through the options for you and your circumstances.  For advice on the right mortgage to suit your personal circumstances, please contact the team at Howard Mortgages on 01803 554455 or contact us here.




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