The Housing, Communities and Local Government Committee (HCLG) has launched a new inquiry investigating why first-time buyers (FTBs), especially those on lower incomes, struggle to buy their own homes.
The inquiry will review Government support, including Stamp Duty reliefs and financial products like special ISAs and mortgage schemes.
It will also look at the Chancellor’s recent plans for a permanent mortgage guarantee and a review of lending rules, which could let buyers use their record of paying rent on time to prove they can afford a mortgage.
The inquiry will focus on homeownership in England.
It will also consider the affordable homes programme, Shared Ownership, and if these routes really help people buy their homes.
The committee is set to look at changes to the Right to Buy scheme, and how these could affect social housing tenants who want to own their home.
Florence Eshalomi, chair of the committee, said: “Decades of failure to build anything like the homes we need means that far too many people stand no chance of making the first step on the housing ladder.
“If you don’t own your own home, and can’t turn to your family for help, how can you be expected to save up for a mortgage when more and more of your income is going on rent?
“Ultimately, it’s crucial that more homes are built, and that the government delivers on its 1.5m new homes target in this Parliament.
“But, when the prospect of owning a home is so slim for too many people, it is important that we examine the routes to affordable home ownership and how the government could help foster better support for first time buyers.”
The committee will hold evidence sessions from October, with witnesses expected to include mortgage providers, homebuilders, developers, councils, rental sector and leaseholder groups, and the Minister for Housing, Communities and Local Government (MHCLG).
The committee will accept written evidence until 29th August.
