A lawyer has called for Help to Buy to be resurrected in the Autumn Statement.
Paul Sams, head of property at Dutton Gregory Solicitors, said a lack of incentive for first-time buyers has overcrowded the rental market and suggests Chancellor Jeremy Hunt should bring Help to Buy or something similar back.
Sams said: “Housing is an issue which should be at the forefront of the Government’s agenda and be a key feature in the Autumn Budget. It’s difficult to see if housing will be a problem that will be resolved anytime soon, especially with the recent cabinet reshuffle, and new levelling up and housing ministers being appointed left right and centre.
“A key incentive which would ultimately have a huge impact on the housing market and introduce some stability, is to bring back Help to Buy, or an incentive which offers a similar amount of support.
“The Help to Buy scheme was extremely beneficial to first time buyers, housebuilders, and the overall health of the property market. As it was self-funding, it should never have been scrapped.
“With a lack of any sort of incentive for first time buyers, this has caused the rental market to become completely oversaturated, with the demand for rental properties completely outweighing the supply.”
He also suggested that introducing some sort of interest relief on landlords mortgages would provide many with peace of mind, and would hopefully prevent them from wanting to sell their property portfolios.
Sams added: “Currently there are too many landlords wishing to sell, and therefore significantly reducing housing stock for renters.
“Changes in Stamp Duty Land Tax to boost the market, especially by removing the higher rate taxes for landlords, have not worked. The ways in which the Government could help buy-to-let landlords is by introducing grants to make their properties more energy efficient, or interest relief on landlord’s mortgages.
“With the abolishment of Section 21, it would also be valuable for the Government to set money aside to invest into a specific housing court, to speed up the process involved with housing cases.”