Young people looking for their first homes will no longer be assisted by the governments Help-to-Buy mortgage guarantee, which ended as 2016 came to a close.
The scheme was introduced in 2013 and required as little as 5% of the property value as a deposit aiming to make it easier for people to buy or move.
Jack Wheeldon, 23, is currently looking to buy a bigger home with his partner, Shanice, after the recent birth of their second child but the pair have been setback by the scheme coming to a close.
“It’s frustrating as we have four mouths to feed and now we have to worry about forking out huge amounts of money for a deposit.”
Previously, mortgage lenders would look for big deposits from buyers which made it difficult for young people to buy a home even if they were able to afford monthly mortgage payments.
Kyle Gill, 23, recently graduated from university and spoke of how Help-To-Buy helped him purchase his first house together with his partner, Lucie.
“It’s a shame that the scheme is ending as it was an absolute godsend for us at a time when we didn’t have a lot of money to put down.”
However, despite supporting over 100,000 home purchases, research conducted by homelessness and housing charity, Shelter, suggests that Help-To-Buy had a negative impact on the housing market as a whole.
“Even though the scheme has helped a small number of people, we fear that the number of mortgages being given out has pushed the average house price up around £8000,” a report said.
The Government have promised to build thousands of new homes around the country, available to buy in 2018, with a 20% discount to young first time buyers.
A number of banks and building societies are now also offering high loan to value loans to ease the pressure on young people.