Labour claims it is now the ‘only choice’ for aspiring homeowners

Shadow chancellor accuses Conservative government of having ‘broken’ housing market

Labour is set to convene an emergency summit of mortgage brokers to assess the impact of the housing crisis (AP)

Labour is now the "only choice" for people dreaming of buying their own home, Rachel Reeves has said.

The shadow chancellor accused the Conservative government of having “broken” the housing market, as Labour arranged an emergency summit of mortgage brokers next week.

Her comments come after the average five-year fixed-rate homeowner mortgage jumped above 6 per cent for the first time since Liz Truss’s disastrous mini-Budget last year.

The Bank of England pushed up UK interest rates to 5 per cent last month, the highest level in 15 years, and millions of mortgage holders are set to see their monthly payments increase when their fixed-rate deals expire over the next year.

Ms Reeves and shadow housing secretary Lisa Nnady will convene the emergency summit on Wednesday, which will look to understand the impact of the spiralling crisis on first-time buyers and homeowners.

The shadow chancellor said Labour's plans to "put rocket boosters" under housebuilding will bring security to families and the national economy and will ensure 70 per cent of people own their own homes.

Lisa Nandy (pictured) and Rachel Reeves are due to convene at an emergency summit of mortgage brokers (PA Archive)

She said: "Too often, families who are saving for their first home but getting no closer to buying it tell me that they feel like they’re doing something wrong.

“But there is a common denominator here when it comes to our broken housing market, insecure economy, soaring prices and broken public services – and that is a Tory government that has failed to achieve anything in the last 13 years.

“Nowhere is that more true than on homeownership, with more and more people locked out of the market, or forced to pay hundreds of pounds a month more because of the Tory mortgage bombshell.

“It is clear that the Labour Party is now the only choice for people who dream of owning their own homes.”

Some of Labour's plans include reforms to planning and bringing back local housing targets.

Labour said it will help renters get onto the ladder by working with lenders to ensure meeting rent payments will be included in mortgage affordability tests, and supporting models of sub-market home ownership.

The party also plans to re-introduce a state-backed mortgage insurance scheme to get more people on the housing ladder, with the state acting as a guarantor for prospective homeowners who struggle to save for a large deposit.

Another plan is to give first-time buyers "first dibs" to homes built in their local area.

Chancellor Jeremy Hunt has in recent weeks summoned mortgage brokers to agree a pact to ease the pressure on families struggling with their repayments.

Responding to Labour’s housing plan, the Conservatives accused the opposition of “meaningless” talk.

“Labour’s wild spending would fuel inflation and send interest rates through the roof, meaning more borrowing and higher taxes for hard-working people managing housing costs,” a spokesman said.