The Government has stated that first-time buyers will be supported in getting on the housing ladder as part of the Leeds Reforms, which aim to cut financial red tape in order to "attract investment and drive growth".

Under the changes, the Bank of England will allow lending at over 4.5 times a buyer’s income, which could help an extra 36,000 people to buy their first home in the first year of the reforms.

The reforms will also help Nationwide support an extra 10,000 first-time buyers by lowering the thresholds on its Helping Hand mortgage product.

Furthermore, the Financial Conduct Authority (FCA) will also make it easier for existing borrowers to remortgage, and the Government-backed Mortgage Guarantee Scheme has now been made permanent, securing the availability of high LTV mortgages at times of economic uncertainty.

The Leeds Reforms, which have been launched ahead of the Chancellor’s Mansion House speech later today, aim to make the UK the "number one destination for financial services businesses by 2035".

As part of these plans, Rachel Reeves has promised to “double down on the UK’s global strengths.

While head of personal finance at Moneybox, Brian Brynes, has welcomed some of these changes, he believes that more may need to be done to secure financial security for first-time buyers.

He concluded: "It is encouraging to see steps being taken to support first-time buyers. Enabling people to borrow more is not a silver bullet. What first-time buyers truly need is not just the ability to take on more debt, but meaningful, long-term support to help them start saving and investing earlier in life so they can build up that all-important deposit.

"The lifetime ISA (LISA) has already played a pivotal role in helping nearly three million young people embed positive saving habits and work toward their first home or retirement. With 80% of Moneybox LISA savers earning £40,000 or less – it’s clear the product is delivering value, particularly for those on lower to middle incomes.

“With a few modest updates, including future-proofing the house price cap and reducing the unauthorised withdrawal penalty back to 20%, the LISA could go further in helping young people build financial resilience and reach their homeownership goals sooner. These are the kinds of forward-thinking measures that can deliver real, lasting impact – not just today, but for generations to come."

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