The Home Builders Federation (HBF) has called for the revival of Help to Buy for first-time buyers. The equity loan scheme is due to finish in March after 10 years of supporting the mainstream housing market.
The HBF, which represents the house builders that deliver roughly 80% of the new homes in England and Wales annually, wrote to Chancellor Jeremy Hunt recently, stating that the scheme was necessary to counteract the slowing housing market.
With the annual figure of 300,000 new homes still remaining in principle, the trade body is concerned that new home completions will reduce, further contributing to the ongoing crisis.
NaCSBA remained critical of the scheme in that it supported mainstream activity, but was not available on the majority of most custom and self build schemes, and lobbied for an alternative scheme to redress the balance. This led to the creation of the Help to Build, although the scheme is being reviewed following a slow start.
In the letter, the HBF states that the average deposit for a first-time buyer in 2021/22 was £43.5k, an astronomically high figure for most people to save.
The letter also calls for a relaxation of the issue of nutrients neutrality and the rules introduced to manage the problem, claiming that these have prevented the development of 100,000 homes. It also calls for a reinstatement of mandatory housebuilding targets for local authorities, which were scrapped last year.
January saw the fifth consecutive fall in average house prices, and the House Builder’s Federation stresses the role housebuilding has in supporting local economies.