To ask His Majesty's Government, what assessment they have made of the impact of current (1) mortgage interest rates, and (2) house prices, on first-time buyers.
Answered on
5 February 2024
The path to lower interest rates is through low inflation, and the government is fully committed to supporting the Bank of England to get inflation back down to the 2% target, including by keeping borrowing under control.
While the pricing and availability of mortgages is ultimately a commercial decision for lenders in which the Government does not intervene, our plan is working, and the average offered mortgage rates on 2-year and 5-year fixed rates have now fallen from their peak in Summer 2023.
The most comprehensive measure of average house prices in the UK is published by the Office for National Statistics. The latest release is for November 2023, when the average house price in the UK was assessed to be £285,000.
Importantly, the Government remains committed to making the aspiration of homeownership a reality for as many households as possible, and we operate a range of schemes that aim to increase the supply of low-deposit mortgages for credit-worthy households and stimulate economic growth. The Government also helps first-time buyers to save for a deposit through the Lifetime ISA and Help to Buy: ISA.
Over 873,000 households have been helped to purchase a home since spring 2010 through government-backed schemes.