Reportedly, there are around 90,000 vacant newly built homes across the UK, with lending institutions attributing this to a lack of high LTV mortgages. However, according to data from the UK Financial Conduct Authority, in the second quarter of 2023, only 4.45% of new mortgages had an LTV ratio higher than 90%. Although some mortgage lenders, such as the Newcastle Building Society, have re-entered the 95% LTV market, this situation still persists nationwide.

Chris Gardner, the Joint CEO of Atelier, stated that concerns from lending institutions about providing 95% LTV mortgages are exaggerated, considering the modest decline in house prices this year. He pointed out that the limitation on high LTV mortgages restricts the number of homebuyers, exacerbating the current rental crisis and depriving individuals of the right to homeownership.

Gardner believes the solution is simple: lending institutions should increase the LTV ratio. He emphasized that as long as the LTV ratios remain low, the number of homebuyers will be restricted. Therefore, he urged lending institutions to take action by providing higher LTV ratios to allocate vacant newly built properties to those for whom they were originally intended, breaking the current market deadlock.

Despite the government's "Mortgage Guarantee Scheme" attempting to bridge the deposit gap, Atelier suggests that lending institutions still have a low acceptance of the scheme. The latest data from Halifax shows that the current average house price in the UK is £281,974, requiring homebuyers to raise a deposit of £70,493 based on standard LTV value requirements.

However, first-time homebuyers with limited budgets often cannot afford such a high deposit, leading to a dilemma in the property market for first-time buyers. Without an influx of new buyers, the residential real estate market can become stagnant.

Gardner added that while the government has been focused on supporting first-time homebuyers, it is often insufficient to meet the needs of first-time buyers who cannot enter the property market. He emphasized that the market needs lending institutions to extend a helping hand by providing more assistance.

He pointed out that mortgage loans are one of the relatively low-risk types of loans. In challenging economic situations, borrowers typically cut expenses to ensure payment capacity before the mortgage payments are affected. Therefore, lending institutions should take action now and provide more mortgage loans to drive market recovery.