The Conservative Party are working on further supporting first-time buyers trying to get on the property ladder, says The Times.
This rumoured package of support could include:
- extending the government’s mortgage guarantee scheme;
- creating a new type of individual savings account (ISA) which is aimed at those looking to build up a deposit to purchase their first home;
- extending the government’s 95% mortgage guarantee scheme (which currently enables prospective homebuyers to purchase a property with a value up to £600,000 with a 5% deposit).
“The government’s potential extension of the mortgage guarantee scheme comes as welcome news for those looking to take their first step on the ladder. It’s been a rocky few years for the UK housing market thanks to rising borrowing costs and stubbornly-high inflationary figures, with those having saved up for a deposit unable to secure home ownership as a result.First-time buyers have been priced out of the market for too long, so I think this announcement indicates a step in the right direction. Britain’s rental market doesn’t seem to be cooling anytime soon, and a growing imbalance between supply and demand which has largely been catalysed by a record number of landlords selling their buy-to-lets has continued to add pressure to the rental sector. Our data shows that 1-in-4 UK renters have lost out on a property due to growing competition and bidding wars.
It’s great to see more encouragement for the younger generation to get a foot on the property ladder, as I expect it’ll help stimulate the property industry and economy in the next year. As house prices continue to fall while the central bank paused interest rate hikes last month for the first time in almost two years, we can expect to see a flurry of activity towards the end of the year and early 2024, despite historically being known as a quieter period for the market, as first-time buyers take advantage of the wave of new mortgage deals available on the market.”
It is understood that the Treasury has been looking at proposals for the creation of a first-time buyer support package since the conclusion of the Help to Buy scheme on 17th March 2023.
