First-time buyer



Mortgage market review

August 1, 2022
Information published was correct at the time of writing

Supporting more people to get onto the property ladder

THE UK GOVERNMENT has announced new measures aimed at supporting more people to get onto the property ladder. Prime Minister Boris Johnson announced on 9 June new measures aimed at supporting more people to get onto the property ladder, including a comprehensive review of the mortgage market. He set out the government’s commitment to reversing declining homeownership rates.

HOMEOWNERSHIP
In his speech, the Prime Minister said: ‘The global rise in the cost of living is only making life harder for savers. So we want it to be easier to get a mortgage.’ He also confirmed his ambition to ‘unlock the opportunity of homeownership’ for more people through Right to Buy. Mr Johnson also announced he was committed to helping those in a position to buy to access the mortgage finance they need, ensuring people are incentivised to save for a deposit no matter their financial situation, and improving the supply of housing across the country.

MORTGAGE MARKET
‘So today I can announce a comprehensive review of the mortgage market. Reporting back this autumn, it will look at how we can give our nation of aspiring homeowners better access to low-deposit mortgages, and what our own mortgage industry can learn from counterparts around the world who have all kinds of alternative ways of offering finance, managing risk and unbolting the door to ownership,’ said the Prime Minister.

‘I want us to deliver on the long-standing commitment, made by several governments, to extend the right to buy to housing associations.’

SPENDING PLANS
‘Over the coming months, we will work with the sector to bring forward a new Right to Buy scheme. It will work for tenants, giving millions more the chance to own their home. It will work for taxpayers, responsibly capped at a level that is fully paid for, affordable within our existing spending plans and with one-for-one replacement of each social housing property sold.

‘Even as we deliver this homeownership revolution, we will continue with our revolution in renters’ rights,’ Mr Johnson added.

HOUSING SHORTAGES
These measures are designed to help more people onto the property ladder and to address the issue of housing shortages in the UK. This comes after the proportion of 25 to 34-year-olds who own their own homes fell from 55% to 34% between 1996 and 2016[1].

The government is confident that these measures will make a significant difference to those looking to get on the property ladder for the first time, and will help to address the issue of housing affordability in the UK.

Source data:
[1] https://ifs.org.uk/uploads/publications/bns/BN224.pdf

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