The sector must continue to get behind shared ownership and other low deposit schemes to help first-time buyers start their home ownership journeys, Just Mortgages has urged.
The government’s Help to Buy scheme came to an end at the close of March, having helped more than 350,000 people buy their own home since its launch in 2013.
The closure leaves a clear gap for those looking for a low-deposit solution, according to Just Mortgages.
John Doughty, financial services director at the firm’s new build division argues that the likes of shared ownership, Deposit Unlock and the First Homes scheme are well placed to fill the void left by Help to Buy.
In fact, he says that many of the schemes have been doing so already, especially with the changes made to Help to Buy in its final version.
Government figures show that 19,386 new shared ownership properties were delivered in 2021-22, a 14% on the year before. This is the highest number since records began back in 2014-15. Of those 19,386 homes delivered, 18,751 were new-build properties.
Doughty commented: “In truth, the likes of shared ownership have long been a viable alternative, especially since the government changed Help to Buy to include regional price caps. This effectively made it less accessible to a number of buyers.
“As it continued to wind down, we saw more enquiries and interest in shared ownership, with 2022 being our busiest year. This clear demand for low deposit alternatives has continued into 2023, especially as both First Homes and Deposit Unlock have continued to expand.
Doughty added that a “joined-up approach” behind these schemes would help highlight the opportunities available for those facing tougher affordability challenges.
“With housebuilding already feeling the impact of losing Help to Buy – especially in a higher interest environment – a concerted effort by all parties will ensure more properties are available, helping to fuel new-build demand in the process,” he said.
“With developers working collaboratively with lenders, housing associations, scheme providers and brokers, we will continue to see more homes built and more opportunities to unlock potential buyers,” Doughty added.
