The mortgage industry has expressed widespread disappointment over the lack of support announced in the Budget for first-time buyers.

Carl Parker, national director at Just Mortgages, said: “It is really disappointing that we didn’t see much in the way of support for the housing market – particularly for first-time buyers. While tax cuts should in theory keep more money in people’s pockets, sticky inflation and sustained cost of living pressures still make it much harder for people to save the necessary deposits and meet tougher affordability requirements.

“Given the government’s position in the polls and with an election on the horizon, it seemed like a great opportunity to bring back Help to Buy, or something similar that includes second-hand homes. Like the scheme or not, it worked wonders in getting people onto the property ladder. Lenders loved the scheme and stand ready to dust it off once again – so did developers who couldn’t move fast enough to meet demand. Let’s not forget the healthy profit made by the Treasury too.

“Changes to capital gains tax have been introduced to increase transactions, although it’s unlikely to sway those portfolio landlords invested in property for the long-term. It could push many of those amateur or accidental landlords hit hardest by increasing rates and costs to dispose of properties. Whether this will boost supply where it is actually needed is still up for debate, with the more likely scenario being increasing supply pressures in an already stretched rental market.”

Steve Richmond, general manager UK&I at estate agency technology provider, Reapit, added: “This was very much an election budget; however, for the property industry it was mostly a disappointment, offering nothing in the way of support for first-time buyers through either supply or mortgage support.

“While the government claims to be on track to deliver on one million homes over the course of this Parliament, they are still falling short on delivering on their target of 300,000 homes per year and despite the recent dip in house prices, affordability remains a challenge among first-time buyers looking to get on the ladder.”