From benefits to bricks speech

The benefits proposal is a bit leftfield and I'm not sure lenders will like it. Using benefits, especially housing benefits or Universal Credit, is not ideal to base a mortgage on and even if it is used it is unlikely to boost borrowing eligibility that much to make a big difference. Also there is a question mark around eligibility that could change through the borrower's circumstances or changes in policy around who is eligible. If someone is relying on it and it gets taken away or reduced then that is a risk if the mortgage then becomes unaffordable. As far as the new right to buy scheme is concerned, this may help some but it is a bold claim that every house sold will be replaced by another to ensure social housing does not reduce further. Given the fact that the Government have failed to get close to any housebuilding targets, this seems a big ask. As ever, the devil is in the detail, and the Government has a record of announcing so-called market changing initiatives only for it to achieve very little. Why a review of the mortgage market is needed to see if deposits can be reduced borders on farcical. Borrowers can get loans with a 5% deposit already and reducing that further just means that more are at risk of negative equity if things go wrong. All of these schemes seem to be demand-sided, which keeps the prices of properties high without addressing the real supply side issues. The Government would be better off to nationalise a housebuilder and build their own affordable housing in places people want to buy or create new places complete with infrastructure that make it appealing.

Boris has, yet again, failed to address the fundamental issue of the current housing market. Until the crisis around the shortage of houses is solved, the ever increasing demand for property will continue to see house prices soar. Those that predicted that rising interest rates, out of control inflation and the rise in living costs would immediately translate into a housing market crash have been proved wrong. Over the past few months our recent mortgage enquiries demonstrate that demand remains as strong as ever, with many people needing to offer well over the asking price for properties in many areas of the UK. Until this supply shortage is addressed, these measures announced will simply exacerbate the situation we are currently in, not to mention that is highly likely mortgage lenders will struggle to adjust their criteria and adapt to these new rules.

No more partygate hangover, it looks like its a housing party for 2022. The “benefits into bricks” is certainly a catchy gimmick but its also likely to go down very well with working class voters. Home ownership is still the dream for a large number of renters in the UK. Also it doesn't look like the housing market will be slowing down any time soon, if new measures are introduced to make it easier to get a mortgage.

Once again, we are seeing headline grabbing housing stories from the government but in reality, that's all that they are. Fristly, the government is unable to force housing associations to take part, nor can many living in these properties afford to buy them, even at a discount. No goverment has ever ensured that funds from right to buy will be invested in new properties and that's partly why we are where we are. This is a typical "dead cat bounce" tactic and has little to do with reality. We already have 95% loan to value mortgages. How many people, in receipt of housing benifits are able to save for a deposit, never mind meet lender's affordibility criteria. Stop the gimmicks and build more affordable housing!