Chancellor Philip Hammond has abolished stamp duty for first-time buyers in Budget 2017, providing a big boost for those people hoping to take their first step on the housing ladder.
Hammond cut the duty on homes worth up to £300,000 today to help young people struggling to get on the property ladder. It will also apply to homes worth up to £500,000 in "high-value" areas, such as London.
And reflecting on today's news Jonathan Sealey, Hope Capital CEO, says the budget was a "for younger people".
He added: “The big rabbit out the hat has to be the abolition of the stamp duty for first time buyers - and the investigation into land banking. This was definitely a budget for younger people.
"While land banking is only just at investigation stage it may result in developers bringing forward house building developments. Increased house building would of course increase supply which, if increased in high enough numbers would have a dampening effect on house price rises which would again be of benefit to first time buyers.
"But it is hard to see how this will happen in the short term, in the volumes the government wants, with the current shortage in qualified construction workers.
“The other consequence of the land banking could be a flood of land coming onto the market before next April, from developers who had not intended to build on it and are worried about an immediate financial penalty being brought in in the Spring statement. This would at least free up the land for those who really do want to build on it which has to be a positive.”
Hammond said the cut -- which comes into force immediately -- would be teamed with a wider £44billion push to build 300,000 extra new homes a year by the mid 2020s.
He said: "This is our plan to deliver on the pledge we have made to the next generation that the dream of home ownership will become a reality in this country once again."