The UK government plans to introduce a 99% mortgage scheme to aid homebuyers, but inadequate housing supply will continue to drive up property prices.

According to the latest Housing Planning Report by the Home Builders Federation and data provided by Glenigan, the number of new housing planning approvals granted in the third quarter of 2023 stood at only 2,447 projects, a 19% decrease compared to the same period last year.

The number of housing units approved for planning permission in England also dropped by 28% compared to the same period last year. This suggests that even with the government's introduction of mortgage plans, insufficient supply will still result in rising property prices.

The shortage of housing supply directly impacts the rise in UK property prices. According to the Financial Times, UK house prices have increased by 60% over the past decade.

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Meanwhile, the average age of first-time homebuyers has risen from 29 in 2011 to 32. With supply shortages and strong demand, the trend of rising property prices may continue. Therefore, the government needs to take more comprehensive and long-term measures to address housing issues.

Firstly, the government should take steps to increase housing supply. This can be achieved by stimulating developers to build more homes through measures such as providing land and streamlining the building permit application process.

Additionally, the government can encourage the conversion of vacant housing and the renovation of old buildings to increase housing supply. These measures can alleviate the UK's housing issues and stabilize the market.

The government needs to safeguard the interests of homebuyers. It can introduce more flexible mortgage schemes to help homebuyers better manage risks and burdens. Furthermore, the government can enact stricter laws and regulations to protect the rights of homebuyers, preventing developers or lending institutions from exploiting homebuyers in situations of market overheating.

The government needs to avoid market overheating and overreliance on mortgages. It can curb the trend of market overheating and maintain market stability and sustainability through regulatory mechanisms, tax policies, and encouraging financial institutions to enhance risk management to ensure the sustainability and risk control of mortgages.