Today’s budget for growth has tackled as anticipated the re-balancing of the economy, but what does it mean for homeowners and the property market in general?

The main news is for first-time buyers who are to be helped on to the housing ladder with the offer of a 20% loan on the price of a new build with a 5% deposit. This is an important step by the Government to help stimulate the lower end of the property market which, in the past few years, has slowed almost to a stop. Joint buyers with a combined income of less that £60,000 will be entitled to receive this loan with no pay back due until the sixth year when rates will start at 1.75% rising each year thereafter by 1% over inflation.

This initiative will be welcomed by the housebuilding industry who will promote the opportunity to new market entrants. These buyers will benefit from the ability effectively to 'fund' a 25% deposit and secure a 75% mortgage, borrowing at rates significantly below those available where higher Loan-to-Values are involved.

Any improvement at the bottom of the market will feed through to the higher levels and facilitate a higher rate of turnover generally, which will benefit people who have been considering a move.

Michael Fiddes, Head of National Sales for Strutt & Parker comments: "Fixed-rate alternatives may well prove a more attractive option to first time buyers under the proposed scheme on the 75% mortgage element. That said, buyers at any level need to consider a likely increase in interest rates generally over the next two years and their ability to cover increased mortgage costs. We may well see more properties coming to the market and this in turn may squeeze values as supply threatens to outstrip demand."