Boris Johnson has pledged to convert “generation rent into generation purchase” with long-term fixed-rate mortgages of up to 95% of the value of a home for first-time buyers.
Speaking at the Conservative Party’s online conference, the Prime Minister said he wanted to “fix our broken housing market” and help young people get on the ladder.
He vowed to “transform the sclerotic planning system” and “make it faster and easier to build beautiful new homes without destroying the green belt or desecrating our landscape”.
But Mr Johnson said, “These reforms will take time and they will not be enough on their own.
“We now need to move ahead with one of the key proposals in our 2019 manifesto: give young first-time buyers the opportunity to take out a long-term fixed rate mortgage of up to 95% of the value of their home – significantly reducing the size of the deposit.
“And to give millions, who currently feel excluded, the chance to own a home and the joy and pride that comes with it.
“We believe these policies could create two million more owner-occupiers, the largest expansion in home ownership since the 1980s.
“We will help to convert generation rent into generation purchase.”
A spokesman for Number 10 was unable to provide any further details on the mortgage policy.
The Conservative Party’s 2019 manifesto pledged to “promote a new market for long-term fixed rate mortgages that will lower the cost of deposits and provide safe home ownership for first-time buyers across the UK”.
Thangam Debbonaire, Secretary for Shade Housing, said: “The Tories have not been able to increase home ownership in over 10 years.
“Measures to stimulate the housing market will not work as long as people have no jobs and no income.
“Young people are particularly hard hit by the UK employment crisis, so if the government wants to help them get on the ladder, it has to get them under control.”
Chris Norris, political director of the National Residential Landlords Association, criticized the prime minister’s language and said landlords should be encouraged to sell properties to first-time buyers.
He said: “While we believe that those who want should be able to buy their own home, the Prime Minister is wrongly implying that tenants cannot turn the properties they live in into their own home.
“In fact, landlords prefer tenants to settle down long-term in a house that they feel comfortable in and that they want to look after.
“If the government really wants to support home ownership, it should consider changing the tax system to support and encourage landlords to leave the market and sell to first-time buyers.
“Reports that ministers are considering increasing capital gains tax would only incentivize landlords to hold onto properties longer than they otherwise could have.”