Huge shake-up for first-time buyers being eyed up by Labour to help fix housing crisis

FIRST-TIME buyers could be given support to get on the property ladder in the Budget next month as the government attempts to fix the housing crisis. It is understood that the government could announce a new scheme that is similar to HomeBuy Direct, a shared equity scheme introduced in 2009 to help first-time buyers purchase new build properties, according to the i Paper. Meanwhile, the government could also build homes specifically for first-time buyers, which would be slightly cheaper than market price. The government has already confirmed it will scrap the current Lifetime Isa and bring in a new savings product for first-time buyers to help Brits get on the property ladder. Sign up for the First Time Buyer Guide newsletter Thank you! The news comes as the housing market stalls due to higher mortgage rates and a lack of buyers to purchase new-build homes. The government has a target to build 1.5million new homes in England by 2029 but earlier this month housing secretary Angela Rayner warned there is only a “slim chance” this will be hit. Meanwhile, the Office for Budget Responsibility has warned it may have to downgrade its growth forecast, which could lead to more government borrowing. This could increase mortgage rates for homeowners as it pushes up the cost of government bonds, which force banks to pay more to borrow money, which they pass on as higher costs to homebuyers. This would put further strain on the market. Developers have already cut their housebuilding targets for the coming year. Most read in Money In its annual results published this month Barratt Redrow expected to build between 17,500 and 17,900 homes in the 2027 financial year. This is a downward adjustment from the previous target to build 17,700-18,200 homes and was down to “continued planning delays and a consequent reduction to expected sales outlet openings”. The previous government under Keir Starmer had hoped the 2025 Planning and Infrastructure Act would help to cut red tape and speed up housebuilding. The Ministry of Housing, Communities and Local Government was approached for comment. Comment now