Getting onto the property ladder is is becoming increasingly out of reach for many would-be first-time buyers (FTBs), according to Steve Seal, chief executive of Bluestone Mortgages.
While the government’s Help to Buy scheme has proved a positive solution for FTBs, with a record amount using the equity loan scheme in 2020/21, Seal believes the scheme’s end will lead to a cliff-edge.
He said: “Not only will this have a huge impact on FTBs themselves, but will have wider ramifications for the market including builders’ ability to sell homes and the rate at which housing stock continues to grow, as well as the government’s house building objectives.”
Seal added that the government has not met its new homes objective for some years, and as a result needs to consider how to stimulate growth when this key incentive is being removed.
He said: “Looking ahead, one area of the market where we would like to see change would be builders’ ability to block customers from reserving homes when they need to use a specialist lender.
“Many of these customers will already feel disenfranchised from the market, having been turned away from a mainstream lender, and this will be yet another barrier to making their homeownership dreams a reality.”