Labour Plans Mortgage Guarantees to Help First-Time Buyers.

The Labour Party, led by Keir Starmer, plans to offer mortgage guarantees to first-time buyers in an effort to help young Britons enter the housing market. Under Labour's proposals, the government would act as a guarantor for individuals who are unable to save for a large deposit, making permanent a current government scheme that offers 95% loan-to-value mortgages. The party's broader housing plan includes relaxing planning rules, constructing 1.5 million homes over the next five years, and increasing stamp duty for foreign buyers. Labour aims to address the increasing difficulty faced by young people trying to buy their first homes, as data shows that the average age of first-time buyers has risen to 32 from 30 in the past decade, and the cost of homes has increased significantly. The housing market in Britain has experienced a downturn due to higher interest rates and a lack of affordability, leading to a decrease in development and difficulty for individuals in saving for a home deposit. Labour's program, called "Freedom to Buy," would guarantee part of the loan for first-time buyers and be fully integrated into the mortgage lending market. The party also plans to work with developers to prioritize local buyers in new developments. Labour's pledge to build 300,000 homes per year matches the promise made by the Conservatives in 2019, but experts have expressed doubts about the feasibility of this goal. With the general election approaching, the Conservative Party has sought to differentiate itself from Labour by promising to protect family homes from capital [Extracted from the article]