“Innovative” or “pointless”? Verdicts on lender’s £5,000 deposit FTB deal

How do first-time buyers view homeownership?

The Society’s research among 500 first-time buyers for the report, published in September 2023, showed that 78% of people in this category felt homeownership was becoming an elite privilege, while 63% believed the UK was in danger of becoming a nation of renters.

“This is a situation we believe can’t be allowed to continue,” Merritt said. “In our report, we’ve recommended that the government reintroduce some form of state support for first-time buyers, and an industry-wide review involving lenders, trade bodies and the government, is needed to start to fix what’s broken in the UK housing market.

“However, for now, we hope this £5k deposit mortgage will help first-time buyers overcome the deposit barrier as we believe this group deserve a chance of homeownership, because they are a vital part of a vibrant housing market.”

Reaction to the announcement, while broadly positive, has been mixed.

Mark Harris, chief executive of mortgage broker SPF Private Clients, responded: ”Product innovation is extremely welcome, particularly when soaring rents mean first-time buyers are finding it harder than ever to raise a deposit.