Affordability of Housing First-time Buyers 2022-11-15
2022-11-15
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The question arises from the ongoing issue of affordability and accessibility in the housing market for first-time buyers, particularly amid rising mortgage rates.
What recent assessment has been made of the affordability of housing for first-time buyers?
The Government are committed to helping as many first-time buyers on to the housing ladder as possible. We are investing £11.5 billion in building more of the affordable homes that the country needs. First-time buyers can access first-time buyer's relief for stamp duty land tax, which means that 90% of first-time buyers need pay no stamp duty at all.
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Assessment & feedback
Did not address the recent assessment specifically requested by the MP.
Response accuracy
Q2
Partial Answer
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Context
The MP notes that younger people on good wages find it increasingly difficult to own their homes, citing statistics showing a decrease in home ownership among under-45s.
For so many younger people, even those on really good wages, the idea of owning their own house is now a pipe dream. We have 1 million more people in private rented accommodation and, since 2010, 800,000 fewer under-45 households own their own home. What is it about 12 years of Conservative government that has been so brutal for young people with ambitions to own their own home?
The Government are very conscious and very supportive of people's desire to own their own home, which is why we have made so many interventions on affordability. Underlying that is the strength of the economy, which offers great employment prospects for those who seek to work hard, to save and, ultimately, to purchase their own home. We are on their side.
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Assessment & feedback
Did not address why younger people face significant barriers in owning homes.
Response accuracy
Q3
Partial Answer
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Context
The MP criticises the economic instability caused by recent government policies, citing a constituent who faces higher monthly mortgage payments due to rising rates.
Mortgage rates are still well above what they were before the mini-Budget. I have a constituent who is a first-time buyer, and he is facing a £200-a-month increase on his mortgage quote compared with before the mini-Budget. Why should my constituent, and thousands like him, pay the price in their mortgage payments for the economic damage caused by the Government's recklessness?
The right hon. Gentleman does this House and his constituents a great disservice with that characterisation, which did not mention once the tragedy of the events caused by Russia's invasion of Ukraine and the fact that we are coming off the back of an extraordinary intervention to protect this country, jobs and businesses from covid. In the future, when he characterises the economy, he owes it to all of us to be more proportionate.
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Assessment & feedback
Did not address why constituents face increased mortgage payments.
Changed Subject
Criticized Opposition
Response accuracy
Q4
Partial Answer
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Context
The MP suggests the government consider Labour's proposal for a mortgage guarantee scheme, which operates in other countries to help first-time buyers.
High deposit demands, increased unaffordability due to price rises and, now, rising mortgage rates all mean it is increasingly difficult for first-time buyers to get on the property ladder, so will the Government consider Labour's proposal for a mortgage guarantee scheme, as operates in countries such as Canada, to help first-time buyers get on the property ladder and to protect them from negative equity in times of market turbulence?
Not only is that a good idea, it is a Conservative idea that we have already introduced. I am glad the right hon. Gentleman has belatedly latched on to it.
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Assessment & feedback
Did not confirm whether they would consider implementing a mortgage guarantee scheme.
Claimed It Was Their Idea
Response accuracy
Q5
Partial Answer
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Context
The MP inquires about schemes operating in the US that allow lenders to extend mortgage duration, which could make payments more affordable.
With interest rates rising around the world, many others countries are considering more imaginative ways of enabling those with mortgages to continue to pay. Will my hon. Friend look at the schemes operating in the United States that allow lenders to extend the duration of a mortgage to allow payments to remain on an even keel and, therefore, to remain more affordable for hard-pressed households?
Yes, I will do that. My right hon. Friend is right to point to the fact that mortgage rates have been rising throughout the world. This Government will always be on the side of trying to protect people with mortgages. Lenders are responsible and are willing to extend. The advice is that people should always speak to their lender if they have difficulties. I will certainly look at the case he mentions.
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Assessment & feedback
Did not confirm whether they would examine US schemes specifically.
Response accuracy