PM vows to help 2m in ‘generation buy’ drive

Prime minister Boris Johnson has vowed to help two million people into home ownership, with the launch of mortgages of up to 95% of the value of home. Johnson has pledged to “turn generation rent into generation buy”. In his keynote speech for the Conservative Party Conference, Johnson said: “We need to fix our broken housing market. “I know that many people are of course happy with renting and the flexibility that it offers. But for most people it is still true that the overwhelming instinct is to buy.” He said reforms to the “sclerotic” planning system will take time to build new homes and highlighted issues of buyers that cannot afford deposits or mortgage payments. Johnson said: “We need now to take forward one of the key proposals of our manifesto of 2019 – giving young first-time buyers the chance to take out a long-term fixed-rate mortgage of up to 95% of the value of the home, vastly reducing the size of the deposit and giving the chance of home ownership. “With our long-term fixed-rate mortgages we want to spread that opportunity to every part of the country.” The initiative follows the rollout of stamp duty relief, announced in the summer statement, which has been widely criticised as foregoing the interests of first-time buyers to support investors and higher value buyers as a catalyst for the economy. Chris Norris, policy director for the National Residential Landlords Association, said: “Whilst we believe that those who want to should have the opportunity to buy a home of their own, the Prime Minister is wrong to imply that renters cannot turn the properties they live in into a home of their own. “If the Government really wants to support homeownership it should consider changes to the tax system to support and encourage landlords considering leaving the market to sell to first time buyers. Reports that ministers are considering an increase in Capital Gains Tax would serve only to incentivise landlords to hold on to properties longer than they might otherwise have done.” To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette Photo: The Conservative Party