Propertymark has urged the Government to take the potential Help to Buy ‘ticking timebomb’ seriously.
London lettings agent Benham & Reeves’ latest study revealed that the Government was taking thousands of pounds more in interest from Help to Buy homeowners who have reached the end of their 5-year interest free period.
The original Help to Buy scheme ran from 1st April 2013 to 31st May 2021.
Getting onto the housing market remained a priority for many homeowners, as eXp UK’s latest survey of more than 1,000 homeowners shows that 89% believed it was important to get their foot on the housing ladder.
Propertymark’s Housing Insight Report also found that the number of first-time buyers had been on a continued rise since May this year.
June 2023 saw a spike in sales to first-time buyers, reported at 35% compared with 25% the previous year.
New prospective buyers registered per member branch are also on the up, with 81 reported in August 2023 from 64 in July 2023.
Nathan Emerson, CEO at Propertymark, said: “In its initial stage, Help to Buy was a sound idea to help the younger generations in particular get onto the housing ladder in the midst of the 2008 financial crisis.
“However, it was never going to be the final solution to what then became a housing crisis in the UK.
“The Government needs to look beyond Help to Buy now as the after-effects of such a policy could create a dangerous housing bubble.”
He concluded: “They need to look at measures that increase housing supply and thereby reduce house prices across the UK.”
