Philip Hammond’s headline housing policy was meant to help the Tories win over young people – instead its unravelling into another budget blunder that inadvertently proves his party has nothing to offer them.
The Chancellor claimed to be “reviving the home owning dream” as he announced the abolition of stamp duty for most first time buyers.
And he promised this morning that the policy, which will cost the Treasury £3.2 billion, will save first time buyers £1,700 on average.
He told the BBC it: “Will be a help and an incentive to focus on getting the deposit together to get on the housing ladder and we hope that many more young people will be able to get on the housing ladder.”
The scrapping of stamp duty for homes under £300,000 is an “incentive to people who’re saving up to buy a property” – @PhilipHammondUK tells @BBCBreakfast
On average it’ll save first time buyers around £1700. pic.twitter.com/mZ3qF3CKkg
— BBC Breakfast (@BBCBreakfast) November 23, 2017
But a budget analysis published this morning by the Resolution Foundation, a respected economic think tank, includes these five stunning facts about Hammond’s ‘big housing offer’:
If a young family put aside 5% of their income every year, it would take 18.5 years on average to put together the deposit needed to take advantage of the policy:
Even if they managed to do that, the policy is going to push up house prices so much first time buyers will actually end up paying £1,5000 more:
So few people are going to take advantage of the policy that the £3.2 billion being spent on it would be enough to literally buy them a house each:
Instead, Hammond could have use the money to build 40,000 new homes for social rent – that’s 7 times more than the Government built last year:
And finally, the people who benefit most from this policy definitely won’t be the young:
Hammond is right about one thing – home ownership is a mere “dream” under the Tories…