Nationwide BS  

Glimmers of hope for FTBs

Critics have suggested that, even at a discount, the price of these starter homes means they will be unaffordable for many first-time buyers. The success of the scheme will also depend on the speed of delivery of the new homes.

Life does not seem to get much easier for first-time buyers, but despite all the challenges they face, demand remains strong.

Buy-to-let changes may end up working against first-time buyers struggling to save if rents rise, but at least the Help to Buy Isa, and soon the Lifetime Isa, are working to build the savings habit. 

Mortgage rates and competition are strong too, despite limited innovation in this sector of the market, so there is no shortage of deals available for those who do manage to save a deposit and can afford to buy.

Mum and dad are unlikely to disappear from the equation of likely success, however. For those without parental support or a sizeable income, unless we see a dramatic increase in supply and an easing in housing price growth, the dream of owning a home could remain exactly that.

David Hollingworth is associate director communications of L&C Mortgages

Key points

Property prices have proved resilient despite the Brexit vote.

Any fears that first-time buyers with small deposits would struggle to access mortgage deals following the removal of the Help to Buy mortgage guarantee scheme in December appear to have been overblown.

Critics of the housing white paper suggested that, even at a discount, the price of these starter homes means they will be unaffordable for many first-time buyers.