The government needs to look beyond Help to Buy due to the policy fuelling a housing bubble, says Nathan Emerson, CEO of estate agency group Propertymark.
The original Help to Buy scheme ran from 1 April 2013 to 31 May 2021.
The Labour Party has pledged to create a new government-backed mortgage guarantee scheme, though according to Emerson more Help to Buy iterations are not a good idea.
He said: “In its initial stage, Help to Buy was a sound idea to help the younger generations in particular get onto the housing ladder in the midst of the 2008 financial crisis. However, it was never going to be the final solution to what then became a housing crisis in the UK.
“The government needs to look beyond Help to Buy now as the after-effects of such a policy could create a dangerous housing bubble. They need to look at measures that increase housing supply and thereby reduce house prices across the UK.”
The number of first-time buyers has been on a continued rise since May this year.
June 2023 saw a spike in sales to first-time buyers, reported at 35% compared to 25% the previous year.
The government is now pocketing thousands of pounds more in interest from Help to Buy homeowners who have reached the end of their five-year interest free period.