20% of first time home buyers say Government schemes like Help to Buy will help them get onto the property ladder.
The BSA’s quarterly Property Tracker report revealed that raising a deposit remains the single largest barrier to home ownership, with 54% of those wishing to buy saying it is their main deterrent.
Property Tracker looked at the risk of a future house price bubble. They said the Help to Buy: mortgage guarantee scheme in particular must be managed effectively in order to ensure it does not lead to a substantial market risk.
Paul Broadhead, Head of Mortgage Policy at the BSA, said: “We are pleased that the Government shares our commitment to get the housing market moving, but it is vital that there is a clearly defined exit strategy right from the start for the Help to Buy: mortgage guarantee initiative.
"It cannot become a permanent feature of the market beyond the time when the country is in economic recovery mode.
“Care is needed to prevent the actions taken today inadvertently causing a distorted housing market in three years time – a market where state intervention has artificially hiked prices.“
