Budget 2021 Commentary – a view from a young professional
The furlough scheme extension until the end of September is a clear positive for young people. Staff aged 16-24 are some of the most likely to be laid off due to this age group mostly working in the retail and hospitality industry. This will hopefully give confidence to employers and the workforce as we come out of lockdown and return back to normality.
With the average age of a first-time buyer being 34, the announcement of the Chancellor’s new mortgage guarantee scheme for small deposit homebuyers is most welcome. First time buyers have historically been a large part of the mortgage market with up to 350,000 purchases every year and the country’s largest lenders including Lloyds, NatWest, Santander, Barclays and HSBC will be offering these 95 per cent mortgages from next month. The scheme will enable first-time buyers and homeowners to secure a mortgage with a 5 per cent deposit on a property of up to £600,000. Combined with the continued SDLT holiday for homes up to £500k and an increased nil rate band until September mean this is great for young people looking to buy their first home.
No changes to the VAT & Personal tax rates means that the everyday person won’t be adversely affected by today’s Budget. Overall, I think Rishi Sunak’s announcements have shown a clear and decisive path for the whole country and especially for the under 30’s.
By Lewis Harding, Accounting & Business Advisory Technician
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