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L&G: Budget doesn’t help ‘resentful renters’

The government’s Budget announcements do little to ease the affordability concerns of ‘resentful renters’, warned Kevin Roberts, director of Legal & General Mortgage Club.

He was responding to Chancellor Rishi Sunak’s Budget, which unveiled a three-month stamp duty extension and a new Help to Buy mortgage guarantee scheme last week.

Roberts said: “The mortgage guarantee scheme offers a welcome boost for first-time buyers. Together with the stamp duty holiday, the government will need to carefully monitor the impact on house prices, but this new scheme provides another route to homeownership for those with smaller deposits, alongside the likes of Help to Buy.

“However, while a positive step the scheme does not solve some of the clear affordability challenges still facing so-called ‘resentful renters’.

“One way to tackle this ongoing issue is by boosting housing supply across the UK, and we welcome further updates from government on how it plans to ensure the steady creation of new, affordable homes.”

The Help to Buy schemes have long been accused of hiking house prices – arguably helping the current generation buy at the expense of future generations.