Propertymark chief Nathan Emerson has called on the Government to help more first time buyers get on the property ladder as affordability continues to be squeezed in many parts of the UK.
Speaking during an interview with Phil Spencer on the TV presenter’s MoveIQ platform, Emerson said many first time buyers need support to scrape together a deposit and that help from the Government would be key.
His comments follow recent rumours that the Chancellor has scrapped his much-debated 99% mortgage initiative for first time buyers, and Emerson no doubt had an eye on today’s budget announcement.
Spencer asked Emerson whether the UK needed an ‘affordability reset’ – a property crash in other words – a question the Propertymark boss swerved.
Instead, he said that ‘resets’ were down to supply and demand, but that as those two drivers continue to be out of kilter, Emerson said ‘creative ideas’ were needed.
“If you look at people in rented accommodation at the moment they are often paying more than they would if they had a mortgage, so we know they are managing to pay that money,” he said.
risky
Saying that the UK shouldn’t’ return to risky lending, he did nevertheless point out that ‘more structured’ mortgage products to lend to those with decent finances but who haven’t scraped together a 15% or 20% deposit is the way forward.
Unless the Chancellor announces new initiatives, or the return of Help to Buy, then Spencer and Emerson agreed that the market would have to provide them.
A handful already exist including services that enable renters to make rental payments count towards their credit rating; mortgages that allow parent to co-invest in a property; and products that ape Help to Buy by enabling tenants to part-buy, part-rent their homes.
Watch the full interview
