It is not yet clear if the government’s promise to build 200,000 new starter homes by 2020 will help first-time buyers to enter the market. A 2004 report said that 120,000 new homes a year were needed, and the Housing White Paper which should present a realistic plan has not yet been published. The managing director of the National Association of Estate Agents said that the government’s proposal was a welcome step but that first-time buyers should not expect too much too soon.

Key Takeaways:

• Government’s pledge to build 200,000 new homes by 2020 will not solve the housing crisis.
• National Association of Estate Agents not convinced that plans will help first-time buyers onto the housing ladder.
• Government’s plans generally welcomed but do not go far enough.

“”…in order to boost the availability of housing in the UK and make it more affordable for first-time buyers, an additional 120,000 homes would need to be built a year. The latest government plans therefore fall far short of this recommendation.””

https://www.ftadviser.com/Articles/2017/01/05/First-time-buyers-should-not-hold-their-breath