Mortgage brokers believe first-time buyers should be the focus of government housing support in the future, warning that continued barriers to entry are closing the entire housing market.
New research from a dealer survey conducted by Accord in partnership with Pegasus Insight shows that half of consumers (50%) identify first-time buyers as the group most in need of government intervention.
Sellers report that first-time buyers face persistent challenges, with 44% citing deposit and insolvency pressures as their main obstacles. The lack of effective support systems is also a growing problem, with traders noting that ‘it’s getting harder and harder to get on the ladder’.
Arbitrators have warned that the difficulties faced by first-time buyers have wider implications for market stability. One retailer noted: “If they don’t get on the ladder then people don’t move,” emphasizing the important role first-down buyers play in enabling a wider flow of purchases.
Education and guidance were also highlighted as important. Sellers emphasized that first-time buyers need a lot of support in navigating the buying process, reinforcing the importance of professional advice. As one respondent said: “More support is needed for anyone buying a property for the first time.”
Chris Hill, head of sales at Accord Mortgages, said: “Sellers are constantly telling us that first-time buyers are under more pressure than ever before. High house prices and challenging deposit requirements, as well as affordability issues and a lack of targeted schemes are all making it harder for people to take that first step on the ladder.”
Hill stressed that the solution must be multifaceted – from better designed support programs and affordability mechanisms to continued innovation from lenders. “There also needs to be a greater focus on education so that first-time buyers understand their options – and this is where retailers play an important role.”
While first-time buyers are at the top of their list, retailers also point to other groups that need government and industry support. Landlords ranked second, with 21% of consumers highlighting the pressure facing the private rental sector. Meanwhile, 14% said older homeowners should be a priority, warning that many are effectively locked out, struggling to downsize due to a combination of Stamp Duty Land Tax (SDLT) costs and limited mortgage options for older borrowers.
Brokers have warned that these challenges are contributing to low housing stock and reduced liquidity in the housing market, which has a negative impact on the overall market.
In contrast, sellers say current homeowners and those looking to move need less support (both down 3%), while renters are also down the list at 9%. This is at odds with recent government interventions, which have focused mainly on tenant protection and rent reform.
The findings suggest that brokers want to see a more balanced housing strategy – one that continues to improve standards while also removing barriers for first-time buyers, supporting responsible homeowners, and allowing older homeowners to move more easily. Together, this will help restore flow, affordability and long-term stability.
