There were mixed opinions on the Chancellor’s Budget yesterday from different areas of the mortgage market – some pleased with the outcome and others disappointed.

Those who were disappointed were hoping the Budget would mention a new Help to Buy scheme and an extension to the current first-time buyer stamp duty threshold.

Under the current temporary measures FTBs currently pay no stamp duty tax for home purchases under £425,000, this was raised from £300,000 as part of the mini-Budget two years ago.

While Reeves did not make the extension for FTBs, she did increase the stamp duty surcharge on second homes and investment properties from 3% to 5%, which takes effect today.

In her speech, Reeves stated: “In our manifesto, we committed to reforming stamp duty land tax to raise revenue while supporting those buying their first home. This will support over 130,000 additional transactions from people buying their first home, or moving home, over the next five years.”

Reallymoving chief executive officer Rob Houghton was “disappointed” to see no reference to the upcoming increase in stamp duty in April.

Research from reallymoving shows the proportion of FTBs paying stamp duty will more than double, from 17% currently to 39%, when the temporary higher thresholds are reversed.

Houghton says: “The last thing FTBs and upsizers need coming down the road is yet another significant upfront cost, when they’re already grappling with extortionate house prices and higher mortgage rates. Reverting back to the old stamp duty thresholds seems completely nonsensical at a time when it’s harder than ever to get on the housing ladder.”

Meanwhile, The Mortgage Lender chief commercial officer Steve Griffiths says the Chancellor announced “very little” to reassure FTBs.

Griffiths comments: “Without this additional relief we could see fewer FTBs able to purchase properties, or buyers requiring larger mortgages which may not be available for this cohort.”

He states: “Affordability is one of the biggest challenges in the market and more needs to be done to support FTB save for their first deposit. We’re hopeful that the government continues to consider how best to support FTBs so that the dream of home ownership continues in the UK.”

The industry was also hopeful that the Budget would present a replacement for Help to Buy to support FTBs. The Help to Buy scheme ended in March last year after supporting more than 350,000 people to get on the property ladder.

The scheme also helped generate almost £2bn in revenue for the Treasury.

Movera chief executive officer Nick Hale states: “The decision not to introduce any schemes like Help to Buy, or to give the Lifetime ISA, or LISA, the attention it deserves, was disappointing.”

“The LISA program was designed to help people save for their first home, to help with the vacuum created by the end of Help to Buy, but the withdrawal penalties and the outdated £450,000 price cap are holding it back.”

“In an era where house prices have skyrocketed, keeping this threshold unchanged since 2017 is out of step with the realities of today’s market.”

“The emphasis on boosting housing supply is beneficial in theory, but without mechanisms to make these new homes accessible to average buyers, there is a risk of oversupply in the wrong market segments, deepening the affordability crisis.”

“Ultimately, a more balanced policy addressing both supply and affordability is essential to foster a sustainable path to homeownership in today’s economic climate.”

Access Financial Services mortgage services and marketing director Nick Jones suggests it is now “down to the industry to support FTBs and fill the hollow where the stamp duty waiver and Help to Buy scheme used to live”.

“The government is engaging with the industry about continuing the Mortgage Guarantee Scheme, which is positive. However, both of these schemes rely on FTBs to find a 5% deposit. That’s the equivalent of £12,500 on a £250,000 property.”

“With rents likely to continue to rise and the cost of living now at a steady high, a lot of potential homeowners who don’t have a Bank of Mum and Dad will struggle to save that amount.”

“A zero-deposit mortgage is the most helpful solution for professional, credit-worthy FTBs, who could easily find themselves paying less monthly for their mortgage than they currently pay in rent.”