Prospective homeowners favour the return of Help to Buy and Stamp Duty relief
Government housebuilding remains below stated ambitions, with 43,700 homes completed between April and June 2025 against an expected 75,000, according to the latest figures from the Office for National Statistics. Against this backdrop, almost a quarter (24%) of first-time buyers doubt that Labour’s pledge to deliver 1.5 million homes in five years can be achieved, Aldermore’s latest First Time Buyer Index has found.
The survey also points to concern over the relevance of the target for those seeking to purchase their first home. A quarter of respondents fear that any new properties delivered under the pledge will still be out of reach for first-time buyers, while another 24% believe that other forms of intervention should take precedence.
When asked which policies would be most effective, respondents showed strong interest in measures that ease upfront and affordability constraints. Almost one in four (23%) favoured the return of Help to Buy, which closed in 2022 and was designed to support first-time buyers purchasing new-build properties with 5% deposits via an interest-free government equity loan, or similar state-backed equity schemes. A further 24% said that additional Stamp Duty relief or higher thresholds would be helpful.
“It’s clear from our research that first-time buyers want practical, tangible support that addresses the real barriers they face,” said Jon Cooper (pictured right), director of mortgages at Aldermore. “Labour’s pledge to build 1.5 million homes is a positive and bold step, one that Aldermore is fully behind.
“But increasing supply alone won’t close the gap for those struggling with deposits, affordability assessments or the rising cost of living. In the Chancellor’s Autumn Budget, we would have welcomed an 18-month Stamp Duty holiday for buyers of new homes under £500,000 – a measure that could stimulate sales and support first-time buyers – as well as the reinstatement of Help to Build, offering a government-backed 20% equity contribution for those able to put down 5%.
“More encouraging is the FCA’s recent announcement on proposed UK mortgage rule changes, which should help more first-time buyers and the self-employed to get a step-up onto the housing ladder. A creative, flexible approach, from innovative mortgage products to recognising rental payment history, or revisiting proven schemes like Help to Buy, will be crucial in helping more people take their first step on to the property ladder.”
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