Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an assessment of the effectiveness of historical mortgage tax relief schemes in supporting access to home ownership.

The Government must ensure the tax system supports strong public finances whilst targeting support where it is most needed. Mortgage interest relief, which was a historical feature of the UK tax system that was abolished in 2000, benefitted lower income individuals less when compared to higher income groups or not at all. It also provides little support to tenants who rent as there is no guarantee that these relieved costs are passed on.

The Government is supporting home ownership through other means. This includes launching a permanent, UK-wide mortgage guarantee scheme to ensure the consistent availability of mortgages for buyers with small deposits.

We know that increasing housing supply is the long-term answer to making home ownership more accessible. The Government has already introduced ambitious reforms to the planning system, judged by the Office for Budget Responsibility (OBR) to boost housebuilding to its highest level in 40 years. Through Phase 2 of the Spending Review, the Government is going further to deliver on its Plan for Change commitment of building 1.5 million homes this parliament, including by catalysing additional private investment to further boost housebuilding by confirming £4.8bn in financial transactions from 2026/27 to 2029/30.