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Government comes clean - it wants home owners, not renters

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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    Unfortunately the SDLT holiday has done more damage to the prospects of FTBs than can be undone with a 95% mortgage! If you can buy a house now because you only need a 5% deposit, your monthly payments are gong to be bigger because you have to borrow more and at a higher rate. How is that helping FTBs?

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    The Government wants High Rise Flats home owners, (not house owners). Buy those from their friends the Big Developers which is why they have dreamt up those stupid unfair Schemes.
    It not true to say they don’t want Renters because they do as well but only to Rent the High Rise Flats from their friends the Big Institutions and Developers even Lloyds Bank is in on it, now taking over this market with the Government’s help to drive out traditional LL’s who have been housing millions for decades at no cost whatsoever to Government but Contribute Billions to the Economy & The Treasury.


    My two penneth....
    BUYERS want houses not high rise flats. The move away from leasehold property by buyers is clear for all to see in the sales market, as many flats are losing value/not selling.
    High rise flats were an experiment in the 60's that killed communities, often becoming no go areas and mazes of crime. An embarrassment, many of which were bulldozed in subsequent decades. Do we learn nothing from experiences of the past?


    I agree John. I wouldn't buy a flat in a million years.


    Glasgow City Council has gone back to building 4 storey tenement flats, just like the Victorians did. I wonder if they'll last as long?

    I have 12 Victorian flats in my Glasgow portfolio and the only issues I have are due to the changes enforced for fire security and energy saving regulations, with mould and damp in flats which no longer have adequate natural ventilation and tenants refusing to open windows or dry clothes outside.

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    I am afraid no matter the intention, history has shown that government initiatives and schemes have increased the prices of houses.

    Although I am a landlord, I believe it is a good thing for those who want to buy a house have the ability to. Those who want to rent should also be able to without the government making them feel that this is wrong. As we all know people have their own reasons and we should all have a choice as part of living in a democracy.

    I am afraid the only way they can make the difference to FTB ability to get in the housing ladder is to do what a lot of us have done, save hard. Watch those pennies, if it's not important get rid of it, don't have the new car, the new phone etc.

    **For all those who would argue that its different times, I am under 35 and have a job that pay just above the national average. I did it because its not what you earn, it's how you spend.


    As the saying goes Ed, ''look after the pennies and the pounds look after themselves'', Over the years I have come across many high earners who are skint living from one pay cheque to the next, why ? because both husband and wife drive new flash cars on lease and generally live the life style to impress their snob friends, the term in the motor trade is ''flash with no cash'', but we need fools like this, because they keep the rest of us wealthy.

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    Ed, you make a number of fair points for sure. However those schemes have driven up Flat prices a bit like Enterprise Zones we used to have, no good for Customers now just roping in young people into unaffordable Loans in the long term. It would be great to live in a Democracy if it wasn’t so corrupt, like City Hall we now have a Mayoral Election in London but no one to vote for which is clear after TV interview with 4 top Candidates last night all talking rubbish and any not worthy to hold Office where Billions of tax payers money is at stake. The Mayor’s Office is out of control no one is accountable for wasting money willy-nilly and backed up by Law, any opposition who don’t agree have no say because to over rule the Mayor they need a two thirds majority which is impossible, hardly Democracy ?.

  • James B

    Let’s hope he has a plan for his millions of housing benefit renters on government life support for them to get a mortgage on their universal credit!

  • Keith  Johnson

    Can't help thinking that record low interest rates are the key to affordability, my generation of first time buyers remember mass repossessions with 16% interest rates, and with recent prolonged wage stagnation and record house prices fuelled by the government trying to massage a free market......just think what financial damage a 2% rise in interest rates could do to a FTB with a 200k mortgage, inflation is predicted to rise so stormy seas are ahead, let's hope private landlords havnt all sold up!

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    Inflation sure to rise no other way for it to go.
    That’s a dodgy old ladder the first rung is ok, watch out the second one is broken..

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    When will politicians realise they are the cause of all the problems in the housing market. Even the policy derived from recent events is causing the market to overheat. I’m all for everyone having there own home but as long as there are fewer homes than people that want them and policy’s that create such crazy prices things will get worse before they get better.


    never--pols are thick scum

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    Over the past 2 - 3 weeks ITV News have been high lighting damp homes with black mold, interesting to note that every one of these have been flats in high rise blocks, thankfully I don't own any, tenants in my area want houses.


    Indeed, and mainly social housing as well.

  • PossessionFriendUK PossessionFriend

    Ownership is a laudable aim, but lets be Realistic ( somebody has to, as the Govt aren't ) its only a tiny fraction of renters are going to make that transition.
    Meanwhile, the Conservative (sic) Govt are 'buying' tenant votes at the cost of landlords.


    But Chris, are they really buying tenant votes. None of my tenants feel any warmer towards the government than say 5 years ago. If anything they're more hacked off as rents are about 30% up over that period, and I've made sure that every increase is laid fairly and squarely at the Government's door


    Very few tenants are ever going to vote conservative what ever they give them

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    This is an old story but Baroness Kennedy nearly got it right only she got her wires crossed, it other way around its pulling the rug from under the owners feet.

  • Fery  Lavassani

    This reminds those of us witnessing these moves by the government, the days on Nigel Lawson. He abolished tax relief for a couple, from two to only one per house purchase. Then he lowered the interest rate. The cleaver part was, to set a deadline for three months. I remember two up two down properties in South Manchester were gaining £400.00 to £500.00 per day. Everyone rushing to beat the deadline, where demand exceeded the supply. Take my word for it. At least 30% of these poor suds who get themselves into a 25 to 35 year mortgage debt, will end up in re possession.


    Totally agree, auctions will be full of re possessed homes again, but the term ''buyer beware'' comes to mind, if people borrow more than they can afford to pay back that's their problem.

  • Fery  Lavassani

    My good man Andy. We all remember the interest rate of 14% above Bank of England of 3%. The younger generation should learn from their German counterparts. In Germany people tend to rent rather than buy. This will give the individual the option of free movement from one city to another, should a better job opportunity arise. Rather than getting tide up to one place, simply because you cannot afford to pay rent as well as mortgage.


    The high interest rates worked in my favor I had just sold my house and was living on a building site in a caravan, wife + 2 young children, my cash on deposit was earning good money , however today is very different, and the young of today are very different also, for those that want to better themselves better jobs often mean moving areas so renting will make that much easier .


    Renters forget the huge costs borne by owners moving house, unlikely to be under five figures for every transaction.

    Shelter, Generation Rant etc. forget the flexibility and huge cost savings which landlords provide to renters early in their careers when mobility is important to take advantage of better job opportunities.

    I was born in the front room of my granny's council house and we lived there for nearly three years until my parents got their own council house. After a further 10 years crimping and saving my parents became owner occupiers.

    This was a fairly typical course just after the war. In the 70's, as a young married couple we had to rent for about 3 years to save our first home deposit.

    Today's young don't have the patience or initiative that previous generations had!

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    yet pols are all about affordable housing to rent or part buy

    clueless morons the lot of them

    ps i would never again buy leasehold--rip-off


    I never have bought leasehold, and would always advise against it, as for part buy and part rent that truly is total madness .

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    Terry. No substitute for 1930 / 1940’s Freehold Terrace or Semi.. Cavity wall house, garden front & back to enjoy , your own front Door no £1300. / £1500, Service Charge or extra maintenance Charges & Ground Rent, no one making noise above or below, ideal for rearing a family no one continually complaining about something or Common areas etc, no comparison & you can still virtually buy them for the same price as those modern over priced Flats, this was a free lesson you can ignore and suffer....

  • George Dawes

    Bizarre how they are pushing the flats when people want outside space now


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