Photo by Labour Pledges to Help First-Time Buyers with Mortgage Guarantee Scheme
As the General Election campaign heats up, Labour has made a bold pledge to help first-time buyers get on the property ladder. Sir Keir Starmer, the party leader, has promised to introduce a permanent mortgage guarantee scheme, which would allow the state to act as a guarantor for prospective homeowners who struggle to save for a large deposit.
Labour’s Freedom to Buy scheme aims to help first-time buyers
The proposed scheme, dubbed ‘Freedom to Buy’, would be a permanent product, unlike the existing mortgage guarantee scheme, which is set to end in June 2025. Labour claims that its scheme would be more comprehensive and would help increase the appetite of mortgage lenders for high loan-to-value lending.
According to Labour, the scheme would allow first-time buyers to purchase a home with a smaller deposit, making it easier for them to get on the property ladder. The party has also pledged to reintroduce housing targets, fast-track planning permissions on brownfield land, and prioritise ‘grey belt’ building, which could lead to the construction of 1.5 million new homes.
Labour’s plans aim to boost home ownership and increase housing supply
The Conservative Party, on the other hand, has pledged to introduce a ‘Family Home Tax Guarantee’, which would commit not to increase the number of council tax bands, undertake an expensive council tax revaluation, or cut council tax discounts. The party has also promised not to increase the rate or level of stamp duty, which buyers pay when they purchase a property.
Conservatives pledge to keep taxes low for homeowners
As the election campaign continues, it remains to be seen which party’s policies will resonate most with voters. One thing is certain, however: the issue of housing and home ownership is a crucial one for many Britons, and the party that can deliver on its promises is likely to win over a significant number of votes.
