But which party is more trusted by first-time buyers?
Less than half, or 46%, of potential first-time buyers believe the upcoming general election will improve their buying prospects, despite manifesto pledges, according to a survey by specialist lending bank Aldermore.
Labour plans to extend the Mortgage Guarantee Scheme and build 1.5 million homes over the next parliament, while the Conservatives hope to eliminate stamp duty up to £425,000 and introduce a new Help to Buy scheme alongside their own pledge to build 1.6 million homes.
Nearly three quarters, or 73%, of prospective first-time buyers think the government and the mortgage industry need to be more creative in introducing new incentives and legislation to help people buy homes.
“One point that most politicians can agree on is that homeownership has become an increasingly challenging goal for the majority of hopeful buyers,” said Jon Cooper (pictured left), director of mortgages at Aldermore. “As voters (and particularly young people) head to the polls, homeownership will be front-of-mind.
“Hopefully this election will re-energise the conversation on how we can help more people onto the property ladder and show more first-time buyers that this goal is still possible.”
Meanwhile, a survey from savings and investment app Moneybox showed that a third (34%) have pinned their hopes on Labour as the party they most trust to support first-time buyers, while only 8% believe the Conservatives have their back.
In the last six months, two-thirds of aspiring first-time buyers have had to adjust their home-buying goals, with more than half now planning to buy later than hoped. Two-thirds (62%) believe owning a home is the key to unlocking financial security.
“With the general election just around the corner, manifesto pledges from political parties have fallen short of providing much-needed reassurance and tangible financial support to first-time buyers who have been navigating significant challenges over the last few years,” said Brian Byrnes (pictured right), head of personal finance at Moneybox.
“With house price growth significantly outpacing wage growth in recent decades, the solutions needed to sustainably boost homeownership without further inflating house prices are complex and will take some time to bear fruit.
“That is why we are calling for the incoming government to commit to pragmatic measures that can be delivered in the near term, such as future-proofing the LISA. Committing to a regular review of the property price cap and introducing an annual emergency withdrawal allowance will ensure the product continues to meet the needs of all those who need it most into the future and will better help savers weather the cost-of-living crisis and any future unforeseen costs.”
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