Housing minister Chris Pincher has made the most explicit admission yet of the government’s desire to diminish the private rental sector.
In a blog written for property portal Zoopla Pincher says: “Extending the aspiration of home ownership is a central mission of this government.”
In the blog he makes repeated references to polling - of which he gives no details regarding sources or number of people questioned. Even so, Pincher says: “Recent polling has revealed that the desire for home ownership has increased during the pandemic with many people looking to take their first step onto the housing ladder.”
And he adds: “Polling has revealed that 69 per cent of private renters and 63 per cent of people living at their family home struggle to find many mortgages with a low deposit.”
Pincher makes his comments in a defence of the 95 per cent mortgage guarantee initiative which came into effect earlier this week.
Ironically Zoopla itself has suggested in recent days that the mortgage guarantee scheme is actually a policy playing to the ‘levelling up’ agenda of the government, courting support in the north of England.
The portal says greater availability of 95 per cent mortgages will have the biggest benefits for buyers in lower value markets in northern England and Scotland - not in the south.
Richard Donnell, Zoopla’s research and insight director, says: “The scheme will have less impact for buyers in southern England where high house prices are a major barrier to being able to afford a 95 per cent mortgage. This aligns to the levelling up narrative and policy approach of government.”
In his Zoopla blog Pincher goes on to say: “First-time buyers will be able to purchase a home with only a five per cent deposit – meaning they can purchase their home having saved a smaller amount upfront.
“As we build back better from the pandemic, we are determined to do everything we can to support first-time buyers and the housing market.
“We are building more homes – in 2019 a pledge to build 300,000 new and attractive homes a year was announced with an investment of over £12bn in affordable housing over the next five years – the largest investment in a decade.”
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