Help to Buy, which offered first-time buyers with a 5% deposit buying new-build homes an interest-free loan, ended in England 2022, with the final completions taking place in 2023.
Stamp duty rates also changed on 1 April 2025, with temporary increases to first-time buyer limits reversed. The threshold for paying stamp duty relief has reverted to £300,000.
The latest Aldermore First-Time Buyer Index, which surveyed around 2,000 prospective first-time buyers and 500 recent first-time buyers in the last two years, found that first-time buyers have “strong appetite for bold, targeted interventions”.
More than a third – 36% – want support for renters saving a deposit, with 35% saying they want increased government support for housing affordability.
A third said they want support for reducing mortgage interest rates through subsidies or guarantees.
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Around 29% said they want tax incentives of saving schemes specially for first-time buyers, which could involve enhancing Lifetime ISA (LISA) benefits or a reduction of penalties for LISA withdrawals.
Approximately 21% said they want Rent to Buy or an expansion of shared ownership, as well as restrictions on overseas investors or second homes.
Only 19% said they wanted incentives to encourage older homeowners to downsize and 18% wanted stronger incentives for green homes and retrofitting.
Jon Cooper, director of mortgages at Aldermore, said: “It’s clear from our research that FTBs want practical, tangible support that addresses the real barriers they face. Labour’s pledge to build 1.5 million homes is a positive and bold step, one that Aldermore is fully behind. But increasing supply alone won’t close the gap for those struggling with deposits, affordability assessments or the rising cost of living.
“In the Chancellor’s Autumn Budget, we would have welcomed an 18-month stamp duty holiday for buyers of new homes under £500,000 – a measure that could stimulate sales and support first-time buyers – as well as the reinstatement of Help to Build, offering a government-backed 20% equity contribution for those able to put down 5%.
“More encouraging is the FCA’s recent announcement on proposed UK mortgage rule changes, which should help more first-time buyers and the self-employed to get a step-up onto the housing ladder. A creative, flexible approach, from innovative mortgage products to recognising rental payment history, or revisiting proven schemes like Help to Buy, will be crucial in helping more people take their first step on to the property ladder.”
