We welcome the Government's continued focus on helping people save, buy and build their way towards home ownership, with a package of measures aimed at supporting savers, first-time buyers and increasing housing supply.

These announcements recognise that home ownership is a journey, and one that often starts long before a mortgage application is submitted. While each measure is significant in its own right, the greatest impact will come from how effectively they work together to help people achieve home ownership.

Cash ISAs remain an important foundation

We are particularly pleased that the Chancellor has listened to concerns raised across the building society sector and reversed the previous decision to reduce the limit to £12,000 for those aged under 65. Cash ISAs, and the new First Time Buyer ISA will play an important role in helping people save for their future, whether that's building a deposit for a first home, creating a financial safety net or putting money aside for longer-term goals.

The decision is particularly welcome given the increases to tax on savings interest announced in the Budget, reinforcing the importance of preserving tax-efficient savings options that help people keep more of their returns.

We've supported efforts to maintain consumer choice and flexibility in saving. Encouraging more people to invest is a worthwhile ambition, but it should not come at the expense of products that millions of people know, trust and rely upon.

As a building society, we also see the wider benefit of healthy savings habits. Members' savings help fund mortgage lending, supporting home ownership and local communities across the country.

Supporting aspiring homeowners facing deposit barriers

For many aspiring homeowners, building a deposit remains one of the biggest barriers to buying a home. The introduction of a new First Time Buyer ISA, alongside reforms to the Lifetime ISA that remove the risk of savers receiving back less than they have contributed when purchasing above the current property cap, recognises some of the challenges first-time buyers face as house prices evolve and saving patterns change.

Measures that help people build a deposit more effectively are particularly important for those who cannot rely on financial support from family members. The sooner people can begin that savings journey, the more opportunities they have to achieve home ownership.

Making home ownership more accessible

The confirmation of the £4.7 billion Your First Home equity loan scheme, which aims to support around 70,000 households, has the potential to provide additional support for first-time buyers who are able to afford monthly mortgage payments but struggle to accumulate a large deposit.

The scheme's 2.5% deposit requirement will undoubtedly help some aspiring homeowners take an earlier step into homeownership. However, even a reduced deposit can remain a significant challenge for those balancing housing costs and everyday expenses.

As final details emerge, it will be important that the scheme remains simple to access, targeted at those who need it most and supports sustainable home ownership over the longer term.

Increasing housing supply

We also welcome the Government's continued focus on increasing housing supply through additional investment in affordable homes and measures designed to give councils greater capacity to build.

The Budget includes an additional £1.5 billion for social and affordable housing, helping to deliver around 10,000 homes and taking total investment in the programme to more than £40 billion over 10 years. Councils will also benefit from measures designed to support future housebuilding.

Helping more people buy a home and building more homes must go hand in hand. Supporting demand is important, but improving affordability over the long term also depends on ensuring there is sufficient supply of homes that people can genuinely afford.

A joined-up approach to home ownership

What's encouraging about today's announcements is that they recognise home ownership as a journey rather than a single transaction.

For many people, that journey starts with saving. It continues with building a deposit, securing a mortgage and finding a suitable home to buy. The combination of support for savers, first-time buyers and housing supply announced today has the potential to strengthen each stage of that process.

The real measure of success will be whether these policies help more people achieve home ownership in a way that is both accessible today and sustainable for the future.

Jonathan Westhoff
Chief Executive, West Brom Building Society