The upcoming Budget must include a replacement for the help to buy scheme to support first-time buyers joining the property ladder, Just Mortgages has said.
CEO at Just Mortgages and Spicerhaart, John Phillips, said that the scheme is "sorely missed" by first-time buyers, especially those living in and around London.
He argued that although there have been recent improvements to mortgage rates, the affordability pressures on first-time buyers are "still too high", particularly with higher rents.
The Government’s help to buy scheme came to an end in March 2023, having helped more than 350,000 people buy their own home since its launch in 2013.
In the process, the scheme also helped to generate nearly £2bn in revenue for the Treasury.
Phillips said that "there’s no doubting the success" of the scheme and that this must be recognised in the Budget on 30 October.
Furthermore, Just Mortgages said that not only would a replacement scheme "contribute towards the reported £22bn black hole" in the UK’s public finances, but also "help to move the entire market and wider economy".
Phillips stated: "I urge the Chancellor to put forward a new version in the upcoming Budget, and one that includes pre-owned properties. Not only will this create real opportunities for first-time buyers, but their activity will help ignite the entire housing market and will support the wider economy too.
"Not only is help to buy recognised by the public, both lenders and developers like the scheme, are receptive to a return and can easily implement it again."
Phillips went on to add that although schemes like help to buy "may be at odds with the core values of a Labour Government", it must recognise its success and need for intervention.
He added that alternative schemes such as shared ownership should also be considered.
Phillips concluded: "Housebuilding targets alone are simply not enough – especially as no Government in recent memory has ever hit them. Increasing supply must work in tandem with tangible support to increase the routes to homeownership. If not a return to help to buy, then the Government really needs to get behind the schemes actually helping people buy in today’s market, such as shared ownership."
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