PropertyNotify has published an article discussing the Help to Buy scheme, a flagship government scheme launched by Osborne in 2013 that helped nearly 400,000 first-time buyers to get on the ladder with a total value of £23.6bn.
It can be seen here, and suggests that ‘Rishi Sunak is said to be considering plans to help first-time buyers now that housing has become even more of a key issue ahead of the next general election.’
This is to counter Labour’s pledge on April 30 to offer more support for first-time buyers with plans to ensure that the private sector would build at least 300,000 homes a year.
It goes on to say ‘Low deposit products from the government have generally been hailed as a lifeline for first-time buyers who may never have been able to own their own home.
However, critics have said that the schemes does not do enough to help people on lower incomes; that they are responsible for inflating house prices; encourage first-time buyers to take out longer and larger debts on overpriced property; and, that they line the pockets of property developer executives; and, that a return of Help to Buy or the extension of the Mortgage Guarantee Scheme (95 per cent mortgage) could encourage first-time buyers to over-extend themselves at a time when housing markets in Europe are volatile and find themselves in negative equity if property prices fall.
The International Monetary Fund (IMF) warned last week that inflated house prices could cause economic pain if rates keep going up.
Despite this, the return of this scheme could help to maintain the fluidity of new buyers in the market by boosting the number of low-deposit products on the market and help both ‘generation rent’ and housebuilders who have welcome the prospect of the scheme’s return.’