“Despite a modest decrease in the number of new build starts, the market has clearly been influenced by the government’s Help to Buy equity loan scheme, which has helped over 170,000 households into home ownership to date.
“Whilst Help to Buy may not have been intended to become a permanent fixture to the UK housing market, it has become a very important element of business for builders, lenders and prospective home owners. It is therefore very important that the Government clarifies what it intends do when the scheduled funding of HTB ceases in 2021, in order to avoid the risk of market disruption. If the scheme is to be maintained but in an amended form, participants will need maximum notice of this in order to plan ahead so that construction and lending can continue smoothly. If the scheme is not to be continued, the Government will presumably announce alternative measures to address the housing shortage, as promised in its February 2017 White Paper.
“With the Autumn Budget on the horizon, IMLA would welcome confirmation that the Government will continue to its support of first-time buyers post-2021 and also ensure that the whole housing market – public and private sectors – continues to be supported.”
Notes to Editors
The Intermediary Mortgage Lenders Association (IMLA) is the trade association that represents mortgage lenders who lend to UK consumers and businesses via the broker channel. Its membership of 43 banks, building societies and specialist lenders include 18 of the 20 largest UK mortgage lenders (measured by gross lending) and account for about 90% of mortgage lending (91.6% of balances and 92.8% of gross lending).