John Phillips (pictured), CEO of Just Mortgages, has urged the Chancellor to introduce a replacement for the Help to Buy scheme in the next Budget to support first-time buyers.
Phillips stated that the scheme is sorely missed, particularly in and around London, where many first-time buyers face high affordability pressures due to rising rents and housing costs.
The Help to Buy scheme ended in March last year after assisting over 350,000 buyers since its launch in 2013, generating nearly £2bn for the Treasury in the process.
Phillips argued that reviving the scheme, especially an expanded version that includes second-hand properties, would benefit the wider housing market and economy.
He said: “While some may question its legacy, there’s no doubting the success of Help to Buy in getting people onto the property ladder.
“Even with recent improvements in rates, there’s still a clear need for this scheme to return, especially in and around London where it is sorely missed, and for those unable to save for deposits due to ever higher rents.
“I urge the Chancellor to put forward a new version in the upcoming Budget, and one that includes pre-owned properties.
“Not only will this create real opportunities for first-time buyers, but their activity will help ignite the entire housing market and will support the wider economy too.
“Not only is Help to Buy recognised by the public, both lenders and developers like the scheme, are receptive to a return and can easily implement it again.
Phillips added: “While a scheme like Help to Buy may be at odds with the core values of a Labour government, we must recognise its success and the clear need for intervention.
“Housebuilding targets alone are simply not enough – especially as no government in recent memory has ever hit them.
“Increasing supply must work in tandem with tangible support to increase the routes to homeownership.
“If not a return to Help to Buy, then the government really needs to get behind the schemes actually helping people buy in today’s market, such as Shared Ownership.”
