A leading Croydon property developer has welcomed George Osborne’s budget for helping first-time buyers to raise a deposit more quickly but fears his announcements will lead to further rises in house prices and rents.
Martin Skinner, chief executive of inspired Asset Management, welcomed the introduction of a new lifetime ISA that will see savers under 40 receive a 25 per cent bonus from the governent on their savings, which means that those that set aside £4,000 year will receive a £1,000 bonus.
Mr Osborne said the move would help those faced with a choice between saving for a pension and raising a deposit and Mr Skinner said: “With the government adding £1 for every £4 saved, the new lifetime ISA will enable first time buyers to raise a deposit more quickly."
However Mr Skinner was less enthusiastic about confirmation that the increase in Stamp Duty Land Tax for additional properties will also apply to larger investors.
"The devil will be in the detail but it is clear that the government’s intention is to shrink the private rented sector," he said.
“As a result, we expect the shortfall in supply to continue and therefore both house prices and, even more so now, rents to continue to rise quite rapidly.
"Once tenants’ complaints about rising rents start to echo around Westminster, as they inevitably will, then the Government will need to look at countering some of their recent anti buy-to-let and private rented sector policies to attract the investment that will be needed.”