"It’s clear from our research that FTBs want practical, tangible support that addresses the real barriers they face."
- Jon Cooper - Aldermore
First-time buyers are calling for the return of Help to Buy and stamp duty relief, according to new research from Aldermore.
With the government falling short of its housebuilding targets for another quarter, delivering 43,700 of the 75,000 homes expected between April and June 2025 according to the ONS’s latest housebuilding data, nearly a quarter of first-time buyers (24%) are sceptical that Labour’s 1.5 million homes pledge can realistically be met within five years.
First-time buyers also express wider concerns about the target itself, with 24% worrying that new homes won’t be affordable, while another 24% believe other measures should take priority.
When asked which measures would make the biggest difference, first-time buyers showed strong appetite for bold, targeted interventions, particularly those that reduce the upfront barriers to buying. Nearly one in four (23%) favour the return of Help to Buy which ended in 2022 - designed to help first-time buyers buy new build homes with 5% deposits by providing an interest-free government loan – or similar government equity loan schemes. Meanwhile, a quarter (24%) would like to see stamp duty relief or higher thresholds introduced.
35% want increased government support for housing affordability more generally and 36% would like support for renters saving for a deposit (e.g. renter recognition in credit scoring).
A third (33%) said they want support for reducing mortgage interest rates (e.g., subsidies or guarantees) and 21% would like to see Rent to Buy or shared ownership expansion.
29% want tax incentives or saving schemes specifically for first-time buyers e.g., enhanced Lifetime ISA benefits or reduced penalties.
Turning to government policy initiatives, 21% would like to see restrictions on overseas investors or second homes, in order to free up supply for first-time buyers and 19% would back incentives to encourage older homeowners to downsize.
Finally, 18% of first-time buyers think there should be stronger incentives for green homes and retrofitting.
Jon Cooper, director of mortgages at Aldermore, said: "It’s clear from our research that first-time buyers want practical, tangible support that addresses the real barriers they face. Labour’s pledge to build 1.5 million homes is a positive and bold step, one that Aldermore is fully behind. But increasing supply alone won’t close the gap for those struggling with deposits, affordability assessments or the rising cost of living.
"In the Chancellor’s Autumn Budget, we would have welcomed an 18-month stamp duty holiday for buyers of new homes under £500,000 – a measure that could stimulate sales and support first-time buyers – as well as the reinstatement of Help to Build, offering a government-backed 20% equity contribution for those able to put down 5%.
"More encouraging is the FCA’s recent announcement on proposed UK mortgage rule changes, which should help more first-time buyers and the self-employed to get a step-up onto the housing ladder. A creative, flexible approach, from innovative mortgage products to recognising rental payment history, or revisiting proven schemes like Help to Buy, will be crucial in helping more people take their first step onto the property ladder."
