But, whether you thought Help to Buy was a force for good or not, it’s ending for new applications from today, and as of right now there are questions over how prepared the industry is.
Arguably, the situation has never been worse for first-time buyers. We’re in the throes of high-interest rates, inflation has reached double digits and affordability is the most stretched it’s ever been. And with the end of the scheme looming, lenders and brokers might be tempted to think they are paralysed by what happens next.
Not least as we can expect little support from a government which is only just emerging from a period of extreme chaos, and faces an unbelievably steep fiscal mountain to climb to restore market confidence.
The issue is bigger than “what’s next?”. Private sector alternatives to Help to Buy are available, but how is the industry working to deploy them? Despite all the advertising surrounding Help to Buy many brokers didn’t recommend the scheme because of its complexities.
However, new versions are from industry and for industry, meaning the difficult and often manual processes associated with Help to Buy have been removed, making it a better experience for all.
‘Real opportunity’ for brokers to make a difference for first-time buyers
There’s a real opportunity for brokers to make the difference for first-time buyers who need it most, and more than ever. By engaging fully with the range of options available to these people, brokers can help more clients overall, and support their long-term pipeline by forging relationships with customers that will need advice again in the future.
It feels like it’s time for a change in mentality. Since launching earlier this year, we’ve heard from thousands of people struggling to buy, but who now have the option to with a deposit booster.
Brokers may find that the size and shape of their pipeline will change if the market does slow over the coming months, however, clearly there’s an untapped opportunity when it comes to the first-time buyer market.
We aren’t the only private solution in the UK, but we’ve still seen huge numbers of enquiries since we started in February. Imagine the total demand across all of the alternatives. That’s a lot of first-time buyers who are reliant on alternative solutions to get onto the ladder.
If they receive appropriate support they will bolster broker pipelines, and help ensure the property market functions effectively as existing homeowners look to move further up the ladder.
There’s significant discussion in the industry around how we as lenders and brokers can come together to support first-time buyers in the current environment, and in the wake of Help to Buy winding down. But the time for talking is over, we need to start helping.
