One of the Government’s 12 missions in its ‘Levelling Up’ strategy is to boost the number of first-time buyers across the UK.
The “ambition” is for a 50% fall in the number of rented homes deemed non-decent, including the biggest improvements in worst-performing areas.
We asked brokers for their thoughts
Jamie Thompson of Manchester-based Jamie Thompson Mortgages:
“The Government loves a good ‘scheme’ to help first-time buyers. Just think of help-to-buy ISAs, help-to-buy equity loans and the mortgage guarantee scheme. When are they going to learn that all that needs to be done is build a lot more houses? If they want to make things easier then increase the supply, it’s simple economics.”
Mark Dyason of the UK-wide independent mortgage broker, Edinburgh Mortgage Advice:
“These are noble intentions but the devil will be in the detail. How do you raise first-time buyer numbers without advantaging the ones already ahead of the target market and pushing the prospect further away from them? Getting builders to activate their landbanks should be a priority, with more starter homes rather than another estate of 3-bed semis.”
Ross Boyd, founder of the always-on mortgage comparison platform, Dashly.com:
“Successive governments have talked the talk but very few, if any, have walked the walk when it comes to building homes, which is the easiest way to help more first-time buyers onto the ladder. It’s a conundrum that no Government, incomprehensibly, has been able to crack.”
Graham Cox, founder of the Bristol-based Self-Employed Mortgage Hub:
“The fastest and simplest way to help first time buyers and provide a path to home ownership for renters, is to make property cheaper to buy.
“In my opinion, much like the Bank of England has a 2% inflation rate target, we need a stated government aim of bringing house prices down to four times average earnings.
“Currently it’s around eight, inflated by years of ultra cheap credit and last year’s stamp duty holiday. It’s a bubble waiting to burst.
“More affordable housing is achievable over time through a massive ramp-up in house building, punitive taxes on property speculation and a monetary policy to maintain house prices at current levels but no higher. That way, current homeowners won’t go into negative equity.”
