The Intermediary Mortgage Lenders’ Association (IMLA) has lent its support to the Building Societies Association’s (BSA) calls for Government reforms aimed at aiding first-time buyers amidst the UK’s housing crisis.
IMLA emphasises the importance of genuine commitment to increasing housing supply across all tenures to prevent future overinflation of property prices. Alongside this, they believe that buy-to-let landlords need incentives from the Government to ensure the sustainability of the Private Rented Sector.
In response to the heightened cost-of-living crisis and soaring rents which hamper the ability of first-time buyers to save for deposits, IMLA aligns with the BSA’s proposition for an independent review.
Such a review would explore how changes to policy and regulation could facilitate more first-time homeownership.
Options could include reintroducing support schemes akin to the defunct Help to Buy initiative, modifying Lifetime ISA criteria, or introducing new Stamp Duty breaks for first-time buyers.
Kate Davies, executive director of IMLA, said: “We welcome the BSA’s timely report on the challenges facing first-time buyers and their recommendations for a Government review of the market, regulation and housing policy.”
Davies also addressed the current housing predicament: “The UK is an advanced economy which is home to one of the most diverse, competitive and innovative mortgage industries in the world. And yet we are in the midst of a housing crisis, with fewer affording to buy a home, and more renters struggling to secure accommodation.”
She highlighted the necessity for Government-supported first-time buyer schemes, accompanied by a sustainable plan to deliver more affordable, quality housing. Davies further pointed out the need to support landlords: “In the meantime, IMLA believes that Government needs to acknowledge the crucial role buy-to-let landlords play in the Private Rented Sector which provides homes for almost 20% of the UK’s households.
“We believe landlords deserve more support, rather than a punitive tax and regulatory regime which threatens to push many out of existence, exacerbating the shortage of rental properties available and pushing up the cost of rent for the remainder.”
