Question to the Ministry of Housing, Communities and Local Government:

To ask His Majesty's Government what assessment they have made of (1) any affordability constraints faced by buyers due to high interest rates, and (2) any potential impact on the homebuilding industry.

The affordability challenges facing prospective first-time buyers mean that too many people are now locked out of homeownership.

The sharp increase in interest rates after the September 2022 Budget created significant challenges for the housing market. In 2023 there were 235,000 first-time buyers, compared to 334,000 in 2021, a fall of nearly 30%.

In addition to increasing the supply of homes of all tenures, the Government has committed to introducing a permanent, comprehensive mortgage guarantee scheme and to giving first-time buyers the first chance to buy homes.