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The Markets
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The Markets
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Real Estate

Labour pledges to extend low-deposit mortgages

Labour will continue a Conservative scheme allowing first-time buyers to access low-deposit mortgages if it wins the election.

Back in 2021, when Rishi Sunak was Chancellor, he and his party introduced the mortgage guarantee scheme, a programme which allows lenders to front 95% of the initial cost of the house.

Jeremy Hunt, the current Chancellor, extended the scheme until July next year, aiming to help new buyers with the chance of getting onto the property ladder despite being in a high-interest rate environment.

Kier Starmer, the Labour leader, said he hoped to "turn the dream of owning a home into a reality".

As part of the scheme, the government acts as the guarantor for part of the mortgage, making it more desirable for lenders to offer low-deposit deals

Labour said it hopes to have some 80,000 new homeowners within the next five years.

However, data from the Office for National Statistics showed around 40% of people aged 15 to 34 in Britain still lived with their parents in 2022, representing nearly 6.7 million people.

Starmer said: “A generation face becoming renters for life. My parents' home gave them security and was a foundation for our family.

"As prime minister, I will turn the dream of owning a home into a reality.”

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