David Bitner, head of product operations for The MarketPlace at Bradford & Bingley says first time buyers were left out in the cold by last week’s Budget.

“The Chancellor is obviously concerned enough about supply and demand in the housing market to have commissioned the Barker Review,” says David Bitner. “He should therefore be extremely concerned about the falling level of first time buyers, yet nothing in this budget addresses this.”

Bitner continues: “We believe the Chancellor has really missed an opportunity to help the beleaguered first time buyer by not updating the stamp duty bands. It was never designed to take money from first time buyers, yet it now affects a vast proportion of them and is seriously hampering their ability to get a foot on the housing ladder.”

“The average first time buyer now has to find over £900 to pay this tax, at a time when most are struggling to even fund a deposit. With the number of first time buyers entering the market at an historical low, just 29% in 2003 compared to 42% just 2 years before in 2001, this is likely to have serious implications for the market as a whole.”

According to the Bradford & Bingley, one-quarter of first-time buyers take between four and six years to buy their first home.

Inheritance tax is a stealth tax

Another Budget item slammed by David Bitner is inheritance tax, which he labels as a stealth tax. “It is also disappointing that the Chancellor has chosen to only increase the IHT threshold by a nominal amount,” says David. “The increase to £263,000 is just 3%. Property prices have increased by 90% since the beginning of 1999 yet the total IHT increase, including today’s announcement, is just 14%.”

“The new limit should be £439,000 to account for house price rises. This tax has now become so mainstream that it is a stealth tax and it clearly needs to be re-addressed.”