The current generation of first time buyers were already facing struggles in taking their first steps onto the housing ladder and the economic implications of Covid-19 have not helped with this. Reportedly average house prices are now nearly eight times the average UK wage meaning that, with mortgages limited at circa 5 times salary with even the cleanest credit rating, first time buyers are needing on average 3 times their annual salary saved as a deposit.
The Queen's speech introduced the government's idea for a 30% discount policy for local buyers and previously Government initiatives have included Help to Buy, Help to Buy ISAs, Shared Ownership Schemes and Stamp Duty incentives; however, would the introduction of a scheme of regulatory capital relief to lenders on first time buyer mortgages be an alternative way forward?
Link to related article: https://www.propertywire.com/blog/intervention-is-needed-to-save-the-dream-of-homeownership/
