The Budget must include a return of Help to Buy, says Just Mortgages

16 October 2024

The head of national brokerage Just Mortgages has called on the Chancellor to put forward a replacement for Help to Buy in the upcoming Budget, to support first-time buyers joining the property ladder.

John Phillips, CEO of Just Mortgages and Spicerhaart, says that the scheme is sorely missed by first-time buyers, especially those living in and around London. He argues that even with recent improvements on mortgage rates, the affordability pressures on first-time buyers are still too high, particularly with higher rents.

The government scheme came to an end in March last year, 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 £2 billion in revenue for the Treasury.

Not only will this contribute towards the reported £22bn black hole in the UK’s public finances, John argues that this support will help move the entire market and the wider economy. He calls for the return of the scheme and for an expanded version, including second-hand and pre-owned properties to increase opportunities for potential first-time buyers.

John Phillips said: “While some may question its legacy, there’s no doubting the success of Help to Buy in getting people onto the property ladder. Even with recent improvements in rates, there’s still a clear need for this scheme to return, especially in and around London where it is sorely missed, and for those unable to save for deposits due to ever higher rents.

“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.

“While a scheme like Help to Buy may be at odds with the core values of a Labour government, we must recognise its success and the clear need for intervention. 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.”

Shared Ownership remains a key driver for leads and enquiries for Just Mortgages’ new build division. Earlier this year, the division announced its best start to the year thanks to demand for the scheme, which has continued throughout 2024. Alongside Shared Ownership, new build advisers at Just Mortgages support clients through Deposit Unlock and the First Homes scheme, as well as in-house initiatives and incentives from developers.

Just Mortgages has more than 650 advisers across the country, split across its employed and self-employed divisions. The new build team continues to grow from strength to strength and is now made up of more than 30 specialist advisers.

Through its nationwide network of advisers, Just Mortgages can advise clients at every stage of life, whether it’s first-time buyers, new build and shared ownership or buy-to-let, commercial finance or later-life borrowing. Through its sister firm Just Wealth, advisers can also support clients with wider financial advice, such as pensions, savings and investments.

Those interested in joining the Just Mortgages team can get in touch by visiting: https://www.justmortgages.co.uk/about-us/careers/