John Phillips (pictured), CEO of Just Mortgages and Spicerhaart, said the Help to Buy initiative was “sorely missed by first-time buyers”, particularly in London and its surrounding areas.
He said even though mortgage rates had started to fall, first-time buyers still struggled with affordability pressures. Phillips said this was especially true for those who were renting and paying higher costs.
Phillips said the return of Help to Buy would help the government to fill the reported £22bn black hole in the UK’s finances, as the scheme generated almost £2bn for the Treasury over its tenure.
Phillips 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.”
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Phillips said the scheme might “be at odds with the core values of a Labour government”, but its success needed to be recognised.
“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,” he added.
Supporting other homeownership initiatives
Phillips said if the government did not bring back Help to Buy, then it should get behind other schemes that help people into homeownership, such as shared ownership.
Just Mortgages said shared ownership was a “key driver for leads and enquiries” within the firm’s new-build division.
This year, it announced its strongest start to the year because of increased demand for the scheme. Just Mortgage said this demand had continued throughout the year.
As well as shared ownership, advisers at Just Mortgages can help clients with the newer Deposit Unlock and First Homes schemes, as well as in-house initiatives and incentives from developers.
