Helping First-Time Buyers Get on the Property Ladder

Labour leader Keir Starmer has unveiled plans for a Freedom to Buy Scheme, aiming to assist individuals struggling to save for a large deposit, who cannot rely on cash gifts from their families. This initiative is designed to help first-time buyers get on the property ladder.

The Current State of First-Time Buyers

According to census data from last year, the majority of young adults, aged 20-24, still live at home with their parents. This highlights the difficulties many face in securing a mortgage and achieving homeownership.

The Labour Plan

Under the Labour plan, first-time buyers will be able to take out a mortgage with a 5% deposit, and the state will act as a guarantor for prospective homeowners. This builds upon the current mortgage guarantee scheme, which was introduced in 2021 to boost the market after Covid lockdowns. The scheme allows lenders to purchase a guarantee on part of mortgages, so if a bank decides to repossess a house, the Government could compensate some of its losses.

“The current system is broken, and it’s time for a change.” - Keir Starmer

Labour’s plan would create a permanent scheme, which is expected to help 80,000 young people get on the housing ladder over the next five years.

Overhauling Planning Rules

In addition to the Freedom to Buy Scheme, Labour has vowed to overhaul planning rules to build 1.5 million homes. This includes new housing targets and directives to build on disused grey belt land, fast track permissions on brownfield sites, and build the next generation of new towns.

New housing developments are key to addressing the UK’s housing shortage.

By implementing these measures, Labour aims to address the UK’s housing shortage and provide more opportunities for first-time buyers to achieve homeownership.

First-time buyers will benefit from Labour’s Freedom to Buy Scheme.