First-time buyers caught in the crossfire of political promises – Bamford

As I wrote in last month’s column, this is a key time for this group, both politically and economically, and the attention they’re now receiving from policymakers on all sides of the divide reflects that. But as we edge closer to next month’s Budget, we might well ask whether the noise and uncertainty is doing more harm than good.

At the Conservative Party Conference this month, the opposition unveiled a headline-grabbing policy – a £5,000 tax rebate for first-time buyers. It’s the kind of move that immediately puts the ball in the government’s court and raises expectations that we’ll see a significant policy response when the Chancellor takes to the dispatch box next month.

Advisers must not be excluded from the first-time buyer debate

The government, for its part, has already been active in this space.

Recent meetings with lenders and building societies were widely reported, with speculation that they centred on first-time buyer access and high-loan-to-value (LTV) lending. But as Sebastian Murphy of JLM Mortgage Services rightly pointed out, the absence of adviser representation at these talks is telling.

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If we’re genuinely interested in improving outcomes for first-time buyers, the absence of advisers – the very people who guide this demographic through their first purchase – seems a glaring omission.

Sebastian has also floated the idea of mandating advice for first-time buyers, and it’s one that deserves serious consideration.

By definition, these are consumers who have never navigated the homebuying process before. They are at a higher risk of misunderstanding key steps, misjudging affordability, or being lured by superficially attractive deals.

The Consumer Duty is, we are told, all about achieving positive consumer outcomes. What could be a more tangible positive outcome than ensuring first-time buyers receive professional advice from the outset – advice that could shape their financial wellbeing for years to come?

Right now, though, the political back-and-forth and pre-Budget speculation may be undermining confidence.

My monthly analysis of high-LTV product numbers showed a sharp decline in availability, suggesting lenders are already taking defensive positions ahead of potential policy shifts.

Some have asked whether the drop in high-LTV products could be linked to those recent government meetings. Have lenders been given a quiet heads-up that something big is coming in the Budget and are now managing their exposure accordingly?

If that’s the case, the result is that first-time buyers are the ones left paying the price in the interim, facing a shrinking range of options and uncertainty about whether to proceed now or wait.

Homebuying reform important, but not a priority for first-time buyers

At the same time, we’ve seen the government announce its latest initiative to improve the home buying and selling process, promising families will save “hundreds of pounds” through a major overhaul that aims to cut completion times by around four weeks.

It’s a welcome ambition, but context is everything. The government’s framing suggests that shaving four weeks off the average transaction time is a major win, but to a younger, more digital-first generation used to same-day delivery and instant service, it may feel underwhelming.

For many of today’s first-time buyers, the process of buying a home still feels painfully analogue. When every other part of their financial life, from budgeting to banking to investing, is done through sleek apps and automated interfaces, a conveyancing process that still relies on scanning PDFs and exchanging endless email chains seems increasingly out of step.

That’s not to say progress isn’t happening. There’s momentum behind digital ID verification, upfront property information, and potentially reservation agreements. But from the outside looking in, it still doesn’t look like the kind of tech-driven, real-time process that younger buyers instinctively expect. And that matters, because their perception of the process can influence their willingness to engage in it at all.

So while it’s encouraging to see first-time buyers back at the top of the policy agenda, it’s important to remember that what they need most isn’t a political bidding war between parties.

They need certainty, practical support, and products that remain available and accessible. They need an advice framework that ensures they’re making the right decisions. And they need a process that feels modern and transparent.

If the Budget delivers meaningful help for this group, that will be a positive step, but it must be designed in a way that complements the market rather than distorts it.

In the meantime, government and policymakers alike would do well to remember that every day of uncertainty pushes another group of would-be homeowners back into renting, saving, and waiting. And the longer this goes on, the harder it becomes for them to take that first step onto the property ladder at all.