As we enter the new year, the Government’s latest attempt to boost the property market seems to be a new scheme for 1% deposit mortgages.
According to Estate Agent Today, chancellor Jeremy Hunt is reported to be considering the introduction of 99% loan-to-value mortgages as part of a housing strategy to help the young and first-time buyers get on the property ladder, making it easier to save for a deposit in a shorter period of time.
The Independent reports that a treasury-backed scheme to help “generation rent” is one of the ideas being discussed for inclusion in March’s Spring Budget, which is planed for the 6th. However, property professionals seem reluctant as they worry this move might drive the prices up without addressing the bigger problem, which is the lack of available homes for sale.
Having many young people competing for a property they could not afford before, could significantly inflate the prices on properties coming to the market.
Rohit Kohli, director at The Mortgage Shop, said: “It's high time for some real action on making housing affordable and significantly boosting the number of homes we build, instead of these quick fixes that don't tackle the big picture.”
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