Members of Congress launch investigation into FTB home ownership barriers – Mortgage strategy

Members of Congress investigated the barriers to home ownership for first-time home buyers, especially those with lower incomes.

The Housing, Community and Local Government Commission said the study will examine how the government supports FTB through tax breaks and financial products such as special ISAs and mortgages.

The Housing Commission added that the home payment plan announced by Prime Minister Rachel Reeves this week is “possible”, including the development of a permanent mortgage guarantee plan and a review of the lending rules of the financial conduct authority, which could allow prospective buyers to pay their rental records on time and mortgages in time.

The committee noted that the average income of average houses in England in 2014 was seven times, according to data from the Office of Statistics.

This dropped to nine times in 2021, although it has since increased to 8.25 times in 2023.

“The inquiry will also explore existing routes for affordable housing ownership provided by the affordable housing program, including shared ownership, and these provide truly affordable ways to own a home.

“The committee may also examine the impact of the proposed change on the right to purchase on social housing tenants’ ability to own a home.”

Other issues that lawmakers will consider include:

• To what extent will the increase in housing supply increase housing affordability for first-time home buyers?

• What are the obstacles to entering the system? The record of the buyer paying rent on time is considered part of the mortgage application?

• How efficient are financial products such as special ISAs and mortgage products to help people get into the housing ladder? How to improve them?

• Are the current stamp duty land tax relief sufficient to support first-time buyers to purchase their first homes?

• Does existing routes for affordable home ownership such as shared ownership provide a truly affordable route for home ownership, and how can they be improved in new societies and affordable housing plans?

• How does the provisions of the upcoming legislation, including the Renters’ Bill of Rights and the Leasing and Common Rights Reform Act, affect the FTB’s home affordability?

Florence Eshalomi, chairman of the Housing Commission, said: “For decades, there hasn’t been a building like the house we need, and that means too many people don’t have the chance to take the first step in the housing ladder.

“If you don’t own your own home and can’t ask your family for help, how do you expect to save your mortgage when you’re growing in income rent?

“Ultimately, it is crucial to build more houses and the government achieves its goal of 1.5 million new homes in that council.

“But when the prospect of owning a home is so slim for too many people, it’s important that we look at the route to affordable home ownership and how governments can help promote support for the FTB.”

A key limit for lenders lobbied to lift should allow for greater loans to be covered, which was granted by the Financial Policy Committee last week.

Since then, both Lloyds Bank Group and Accord Mortgage have launched higher loan loan programs nationwide.

The Housing Commission will accept submissions until August 29.