Propertymark has urged the government to take the potential Help to Buy ‘timebomb’ seriously.
The news comes as London lettings agent Benham & Reeves’ latest study reveals that the government is now pocketing thousands of pounds more in interest from Help to Buy homeowners who have reached the end of their five-year interest free period.
The original Help to Buy scheme ran from April 2013 to the end of May 2021.
Getting onto the housing market remains a priority for many homeowners, with a recent study of more than 1,000 homeowners showing that 89 per cent believed it was important to get their foot on the housing ladder.
Propertymark’s own recent market survey also found that the number of first-time buyers has been on a continued rise since May this year. June 2023 saw a spike in sales to first-time buyers, reported at 35 per cent compared to 25 per cent the previous year.
New prospective buyers registered per member branch are also on the up with 81 reported in August 2023 from 64 in July 2023, demonstrating that the urge to purchase a first property or to make a move within the property chain remains strong.
Nathan Emerson, chief executive at Propertymark, says: “In its initial stage, Help to Buy was a sound idea to help the younger generations in particular get onto the housing ladder in the midst of the 2008 financial crisis. However, it was never going to be the final solution to what then became a housing crisis in the UK.
“The government needs to look beyond Help to Buy now as the after-effects of such a policy could create a dangerous housing bubble. They need to look at measures that increase housing supply and thereby reduce house prices across the UK.”
https://www.lettingagenttoday.co.uk/breaking-news/2023/10/agents-warn-of-time-bomb-after-lettings-agency-report
