The latest figures from the HM Treasury relating to the Mortgage Guarantee schemes shows that there were 50,038 mortgage completions from scheme launch on 19 April 2021 to the end of September 2024, which represents 1.2% of all residential mortgage completions in the UK
Of these, 86% were purchases by first time buyers and the total value of mortgages supported by the scheme is £9.9bn.
The data reveals that the scheme has supported a higher proportion of mortgages in the North West, South East and Scotland and a lower proportion in London and Northern Ireland.
Commenting on the data, Quilter financial planner Holly Tomlinson said: “The latest Mortgage Guarantee Scheme statistics highlight the challenges that continue to face first time buyers, as well as the risk that government schemes to support them could fall short of addressing the causes of the current housing crisis.”
She pointed to the fact that mortgage completions supported by the scheme had tailed off significantly since it first launched, but these latest figures show there has been a slight increase in uptake. Between July to September 2024, 4,263 completions were supported.
“Comparatively, in the first quarter of 2024 just 1,613 completions utilised the scheme. This may be as a result of more people trying to push through completions ahead of the upcoming stamp duty changes.
“However, the average property value under the scheme was £208,499, significantly below the national average. This raises questions about the scheme’s ability to cater to those in more expensive parts of the country.
Tomlinson stressed the fact that one of Labour’s manifesto pledges was to launch a ‘Freedom to Buy’ scheme, which would effectively make the current Mortgage Guarantee Scheme a permanent fixture.
“Progress on this launch has since gone quiet, and one reason for this may be the concerns that the initiative risks doubling down on policies that fail to meaningfully address affordability issues or the structural flaws in the housing market.
She concluded: “For first-time buyers, what’s truly needed is a commitment to addressing housing supply. Without sufficient stock, no amount of demand-side intervention will solve the affordability crisis.
“It is vital that the government prioritises policies that tackle the imbalance between supply and demand, such as incentivising housebuilding, streamlining planning processes, and increasing investment in affordable housing. These structural changes, coupled with measures to reduce the tax burden on first-time buyers, would go much further in supporting aspiring homeowners than merely tinkering with schemes that perpetuate the status quo.”
