Will the Chancellor help the South's housing market?

Will the Chancellor boost the South’s housing market?

Buyers and sellers alike say they are finding it hard to get deals over the line in the current market, and are hoping the upcoming budget will bring help from the chancellor.

The housing market is often seen as a barometer of the economy, and it is one area that can feature in a Chancellor’s budget.

John Healey is expected to confirm the "Your First Home" scheme, which allows people to purchase a new-build home with a 2.5% deposit and a 20% equity loan.

However, most sales in the South involve second-hand homes.

With the average house price in the South East beginning to climb again after an earlier fall this year - 0.9% month on month in October, according to property website Rightmove - what can be done to sustain that momentum?

The initial valuation on Rebecca Guest's apartment was £60k more than it sold for

Rebecca Guest is selling her one bed apartment in Newbury and hoping to move to the North East.

"I want a chance of being mortgage free, if I stay here I'll be working until age 70. In the North East, properties are significantly cheaper and I'll have a better quality of life, maybe even working part-time".

But finding a buyer proved difficult.

"It's a buyers market, all around this area there are for sale signs. I feel absolutely heartbroken that I've lost most of the capital I've put into the flat – that's how much less I've had to sell it for".

She blames changes to landlord rules, which she says have put many off and prompted them to sell.

"They just want to get rid of the responsibility, but it means people have more choice, can be more picky and more choosy on how much they offer you".

Guest believes the government should do more to help first-time buyers secure mortgages on all kinds of property, not only new builds.

"Lenders don't have the risk appetite they once had to lend".

Three purchases have fallen through for Phoebe Jupp and her partner

Phoebe Jupp and her partner Kai have spent the past 16 months trying to buy their first home near Portsmouth.

Three sales have collapsed because of survey problems or vendors pulling out.

"It's gone wrong so many times, I've been told it's a buyers market but we've had stress and hassle the whole way through. We're just fed up".

At the moment, they are living in Jupp's mother's bedroom while she sleeps on a sofa-chair in the lounge.

"I feel awful, she only downsized when she knew we were moving, then last minute it was all off" added Jupp.

Each failed purchase has left them out of pocket on surveys and solicitors fees.

"We're now having to dip into our deposit, which means we have less money for the house".

Jupp says the chancellor should make things easier for all first-time buyers, not just those purchasing new builds.

"The Scottish scheme where vendors have to pay for the survey would help, then we'd know what we were buying".

Dan Channer believes confidence in the budget will help bring momentum to the housing market

Dan Channer, CEO at Jones Robinson's estate agents in Newbury, says September was their strongest sales month in several years.

"The market is not as bad as people think, but the Iran War in February did push mortgage rates up which put a brake on demand, but there is pent up demand particularly from first time buyers".

He said there are many flats on the market in West Berkshire and believes the "scare stories" about leasehold have not helped.

"There's even a name for it - fleecehold - and the whole leasehold system needs blowing up and re-inventing because that will bring back buyers and help them realise it's not as scary as they might think".

He thinks it is difficult for the government to create a national policy because home values differ so much.

"It's harder in the South East for first time buyers and second-steppers. As an estate agent, I'd love to see positivity in the budget to stop people feeling fearful and boost momentum, a tweak in stamp duty levels and any incentive to downsize for older people".