Propertymark welcomes the Chancellor’s announcement, recognising it as a positive step towards providing greater certainty and support for first-time buyers. The move aligns with our previous recommendations on improving home buying and selling processes, where we've consistently highlighted the need for greater support and transparency to ensure smoother transactions and improved affordability.
However, we echo the industry’s sentiment that further comprehensive reforms are necessary to fully address housing affordability challenges. Propertymark continues to advocate for wider market interventions, including regulatory changes that would streamline home buying processes and reduce fall-through rates, enhancing confidence for buyers and agents alike.
What does this mean for buyers and agents?
For buyers, particularly first-time buyers, this announcement brings renewed hope. With the availability of 5% deposit mortgages secured, more people can enter the housing market without needing significant upfront funds. This could stimulate increased activity and demand within the property market.
While the scheme helps buyers get onto the housing ladder, it may not ease affordability concerns related to high house prices and mortgage rates. The industry has called for broader financial market reforms to complement the Mortgage Guarantee Scheme and enhance overall affordability.
The broader financial reforms at a glance
Reeves also detailed the Leeds Reforms, aimed at reshaping the UK's financial services sector. Key reforms include measures to enhance transparency, boost competition, and foster innovation within financial markets. These reforms are expected to indirectly support the housing market by creating a more competitive lending environment.
Looking forward
As the Mortgage Guarantee Scheme becomes permanent, Propertymark will closely monitor its impact on market activity and homebuyer confidence. We remain committed to supporting members by advocating for additional measures that address long-term affordability and efficiency in the housing sector.
Mortgages explained
Mortgages are a loan used to cover the overall cost of a property purchase. This guide covers everything you need to know, and how to find one that works for you.
