However, a survey by mortgage lender Aldermore has revealed fewer than half (46%) of potential first-time buyers believe the election will improve their buying prospects, despite manifesto pledges.
Labour is promising to extend the Mortgage Guarantee Scheme (MGS) which, through government backing, will make mortgages for buyers with 5% deposits more accessible. The scheme, introduced by the Conservative government, will be rebranded by Labour as Freedom to Buy.
It also pledged to build 1.5 million homes over the next parliament.
Conservatives, meanwhile, are also planning to extend the MGS plus they will make permanent the stamp duty break for first-time buyers on up to £425,000 of their property’s value. They want to introduce a new Help to Buy scheme as well as build 1.6 million homes.
Yet the majority of the would-be first-time buyers quizzed by Aldermore did not seem convinced this was enough to help them overcome the many challenges they face.
Aldermore said 73% of prospective first-time buyers thought the government and the mortgage industry needs to be more creative in introducing new incentives and legislation to help people buy.
Jon Cooper, director of mortgages at Aldermore, said: “One point that most politicians can agree on is that homeownership has become an increasingly challenging goal for the majority of hopeful buyers. As voters (and particularly young people) head to the polls, homeownership will be front-of-mind.
“Hopefully this election will reenergise the conversation on how we can help more people onto the property ladder and show more first time buyers that this goal is still possible.”
You can read more about the parties’ pledges in this article.
What do you think about what Labour, Conservatives and other are offering first-time buyers? Do you think it will make the homeownership more accessible or does more need to be done? Tell us in the comments below.
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