Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of increased interest rates in the property market on (1) homeowners, (2) prospective buyers, and (3) the wider economy.

The path to lower interest rates is through low inflation, and the government is fully committed to supporting the Bank of England to get inflation back down to the 2% target, including by keeping borrowing under control.

While the pricing and availability of mortgages is ultimately a commercial decision for lenders in which the Government does not intervene, our plan is working, and the average offered mortgage rates on 2-year and 5-year fixed rates have now fallen from their peak in Summer 2023.

Importantly, the Government remains committed to making the aspiration of homeownership a reality for as many households as possible.

We operate a range of schemes that aim to increase the supply of low-deposit mortgages for credit-worthy households, including first-time buyers, increase the availability of new housing, and stimulate economic growth. These include the Mortgage Guarantee Scheme, which is open until the end of June 2025, as well as First Homes and Shared Ownership through the Affordable Homes Programme. The Government also helps first-time buyers to save for a deposit through the Lifetime ISA and Help to Buy: ISA.

Over 873,000 households have been helped to purchase a home since spring 2010 through government-backed schemes.