UK Prime Minister Boris Johnson’s speech earlier today announced new measures to support more people to get onto the property ladder, including a comprehensive review of the mortgage market but the new proposals were not welcomed by those within the industry.

In his speech, the Prime Minister set out the government’s commitment to reversing declining homeownership rates.

This comes after the proportion of 25- to 34-year-olds who own their own homes has fallen from 55% to 34% between 1996 and 2016.

Johnson also confirmed his ambition to “unlock the opportunity of home ownership” for more people through Right to Buy.

The Prime Minister also committed to helping those in a position to buy, to access the mortgage finance they need, ensuring people are incentivised to save for a deposit no matter their financial situation, and improving the supply of housing across the country.

Commenting on the proposals, Coreco managing director Andrew Montlake says: “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 enough to make a big difference.”

“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.”

Meanwhile, Shaw Financial Services founder Lewis Shaw describes the Prime Minister’s announcement as “the ultimate political meringue: sweet, lightweight and with very little substance”.

“Homeownership levels are lower now than they were in 2010, and we know that vast swathes of the right to buy houses have ended up in the hands of private landlords. We don’t need more right to buy schemes; we need to get more homes built and bring down the cost of buying and owning a home. Talk about fiddling while Rome burns,” Shaw comments.

Also reacting to today’s announcement, Quilter mortgage expert Karen Noye says the Prime Minister “tried to persuade the public to move on from the ‘partygate’ scandal by announcing a slew of new housing measures”.

“One of those announcements was a review into the mortgage market, which will report in the autumn. However, the details of what this actually means are yet to be seen. By his own admission, there are a healthy supply of high loan to value mortgages available so what this review will uncover is anyone’s guess.”

“The crux of the matter is that it is not the mortgage industry that needs fixing but the housing market and its sky-high prices. Part of the reason why house prices are soaring is that there are so few properties out there. Build more stock and the scramble for properties, which is pushing prices ever higher will come to a halt. This would, in turn, help generation rent whose dreams of owning a house are unfortunately just a dream at present.”

Last month it was revealed that the UK government was set to provide households in England who rent properties from housing associations the opportunity to purchase them at a discounted price.

The proposal intends to give the 2.5m households in England who rent properties from housing associations the power to purchase their homes at a discounted price.

The proposals were said to be inspired by Margaret Thatcher’s scheme, which was launched in 1980 to allow families to buy homes from councils.

Noye explains: “We have seen time and again government housing schemes falling very far from the mark even if well-meaning. A good example is Help to Buy, which has for some been disastrous and contributed to lining the pockets of housebuilders while not actually helping as many people as hoped.”

“Johnson may be in luck though and prices will come down regardless. The nation faces a dire financial picture with rising inflation and interest rates rising as a result. All this could ultimately cause house prices to slump on their own,” she adds.

Commenting on the promise of an extension of the existing right to buy policy to those who rent housing association properties, Levelling Up, Housing and Communities (LUHC) Committee chair Clive Betts says: “The Prime Minister needs to make clear that if the government presses ahead with extending the right to buy for those renting housing association properties, it is vital the money goes back into the system of social housing so that new homes can be made available for low-cost rent and purchase.”

“The success of an extended Right to Buy policy will surely depend upon the homes sold being replaced and the housing supply being maintained. I hope the Government will explain how this policy will safeguard the provision of accessible and affordable housing, particularly affordable rented property.”

“It’s important the government comes forward with more detail on this housing policy to back up the PM’s words. Extending Right to Buy will not be a cost-free policy, so further detail on how this is to be funded and how it will provide for the construction costs of new homes is essential. Those who need low-cost homes should not pay the price of this policy. The Government should commit to ensuring current social housing is replaced on a like-for-like basis – a house that is sold should not be replaced by a flat.”

“The government will also need to explain how it will overcome the legal hurdles of forcing housing associations, who are independent bodies, to sell their assets. The Government should also indicate whether they intend to require the agreement of housing associations in implementing this policy.”