Labour promises 'freedom to buy' low deposit mortgage scheme

Labour woos younger voters with promise to extend the low-deposit mortgage scheme introduced by the Tories.

The Labour party has announced that it will make a scheme designed to ensure low-deposit mortgages are available for first-time buyers permanent if it wins the general election.

The mortgage guarantee scheme was introduced by the Conservative party's then chancellor Rishi Sunak in 2021. It was extended until July next year by current Tory Chancellor Jeremy Hunt.

The measure, which Labour has called "Freedom to Buy", has the government act as guarantor for part of a home loan – to encourage lenders to offer low-deposit deals.

The Labour Party says its plan will help more than 80,000 young people get on to the housing ladder over the next five years. Making the scheme permanent will mean young people facing tough conditions in the private rented sector or struggling to save will not be "locked out of homeownership".

The Labour leader Sir Keir Starmer said, "A generation face becoming renters for life.

"My parents' home gave them security and was a foundation for our family.

"As prime minister, I will turn the dream of owning a home into a reality."

New house price data showed that the average house price in the UK was £288,688 in May, according to mortgage lender Halifax.

In addition to this measure, Labour has also promised to "reintroduce housing targets", fast-track planning permissions on brownfield land and prioritise "grey belt" building - which it claims could boost building by 1.5 million homes.

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