Budget 2021: What the residential market thinks about 95% mortgages plan

Martijn van der Heijden, finance chief at online mortgage company Habito said: “This policy will be a shot in the arm for the availability of mortgages at 95% borrowing, which was decimated by Covid. This support from the Government for banks to lend at this level will see the swift reissuing of these low-deposit loans to the market.”

Mark Hayward, chief policy adviser at trade body Propertymark, said: “A government backed mortgage guarantee scheme will help first time buyers tackle the issue of deposits, which is often the first hurdle that prevents them getting on the housing ladder.”

George Franks, co-founder of London-based estate agents Radstock Property: “The Treasury is acutely aware that sentiment around the property market can have a material impact on the economy as a whole and this will have influenced the policies announced on Wednesday.”

In another move also welcomed by estate agents, Chancellor Rishi Sunak has extended the stamp duty holiday that was due to finish at the end of this month.