A senior new-build property professional has warned that the Help to Buy scheme will be “sorely missed” by first-time buyers once the government-backed equity loan scheme closes in March 2023.
Owen McLaughlin, managing director of Countrywide New Homes, said the biggest change for first-time buyers will be affordability but warned there may be consequences for the rest of the property market.
Speaking in an exclusive video interview with Lee Dahill of Estate Agent Today, McLaughlin said: “When you look at Help to Buy transactions, it’s a worry about how first-time buyers get on the property ladder.
“The first year will see a reduction of sales before you take into account other economic implications.
“How do young people even make those first steps?
“It will have a knock-on effect as those people won’t then be moving into a second or third home.”
McLaughlin suggested that shared ownership may become a more popular alternative for first-time buyers and said Countrywide has already seen a 400% increase in transactions over the past three years.
He added: “The First Homes scheme may also gain legs but Help to Buy will be sorely missed.
“The Prime Minister will have a problem on their hands and will need to find something more robust than ideas they have now.”
Watch the full video interview below: