The Treasury has released the latest statistics for the Mortgage Guarantee Scheme, showing that from 19 April 2021 to 30 June 2024, it helped to complete 45,775 mortgages.
Among that number, 87% were purchases by first-time buyers. The total value of mortgages supported by the scheme stands at £8.9bn.
Compared to total mortgage completions in each region, the scheme has supported a higher proportion of mortgages in the North West, South East and Scotland, and a lower proportion in London and Northern Ireland.
The mean value of a property purchased or remortgaged through the scheme was £204,716, compared to a national average house price of £288,000.
Karen Noye, mortgage expert at Quilter, believes the statistics highlight the challenges facing first-time buyers and underscore why Labour’s ‘Freedom to Buy’ proposal – which would see the scheme rebranded and made permanent rather than expire in June 2025 – risks falling short of addressing the root causes of the housing crisis.
She commented: “Since its launch in April 2021, the scheme has supported just 45,775 mortgages, with 87% of these going to first-time buyers. However, the average property value under the scheme was £204,716, significantly below the national average, raising questions about its ability to cater to those in more expensive parts of the country.
“Labour’s pledge to make this scheme permanent under their rebranded ‘Freedom to Buy’ initiative risks doubling down on policies that fail to meaningfully address affordability issues or the structural flaws in the housing market.”
Noye added: “While well-meaning, Labour’s plans do little to tackle the core problem of high house prices relative to wages, which continue to put homeownership out of reach for many. The reliance on 95% loan-to-value mortgages leaves buyers with minimal equity, increasing the risk of negative equity should house prices fall – a real concern in a volatile market.
“Schemes like these are more of a sticking plaster than a solution, helping only a fraction of buyers while doing nothing to address the broader affordability crisis.”
Noye also said that adding to the strain on first-time buyers is Labour’s decision to not extend the increase to the stamp duty threshold – a move she believes has already sent ripples through the market.
“In the short term, this policy will trigger a rush of buyers scrambling to complete purchases before the threshold reduction takes effect, artificially inflating house prices as demand spikes,” she said. “In the long term, it makes homeownership even more expensive for first-time buyers, eroding affordability further and exacerbating the very issues schemes like ‘Freedom to Buy’ claim to solve.”
Noye concluded: “For first-time buyers, what’s truly needed is a commitment to addressing housing supply. Without sufficient stock, no amount of demand-side intervention will solve the affordability crisis.
“Labour must prioritise policies that tackle the imbalance between supply and demand, such as incentivising housebuilding, streamlining planning processes, and increasing investment in affordable housing. These structural changes, coupled with measures to reduce the tax burden on first-time buyers, would go much further in supporting aspiring homeowners than merely tinkering with schemes that perpetuate the status quo.”