First Time Buyers: Greater London

The most sustainable long-term method to improve housing affordability and help people into homeownership is to increase the supply of housing. The government is committed to building 1.5 million homes this parliament (compared to the 1 million homes delivered the last parliament). In December, we announced major changes to the National Planning Policy Framework, including the restoration of mandatory housing targets and changes to allow development on ‘grey belt’. These reforms were forecast by the OBR to deliver 170,000 additional homes and add £6.8bn to the economy by 2029/30.

We have worked with the FCA and the Bank of England, who have clarified and increased the flexibility of their mortgage regulations. This is helping more customers – especially first-time buyers – to borrow what they need to buy the homes they want, while retaining protections so that lending remains affordable and responsible.