24 March 2026
Industry-backed report proposes converting student debt into housing equity and new government-backed loan scheme as mortgage rates rise
Industry-backed report proposes converting student debt into housing equity and a new government-backed loan scheme as mortgage rates rise
- Enfield Council & Pocket Living report calls for radical action to arrest the decline in homeownership
- Report proposes a series of bold and ground-breaking proposals to government, including converting student loan debt to equity
With levels of homeownership continuing to fall and increasing numbers of first-time buyers locked out of the housing market, a report, Rebuilding the Ladder, commissioned by Enfield Council and supported by Pocket Living, has unveiled a raft of radical new measures designed to help more young Britons onto the housing ladder and boost overall levels of new supply. The proposals come at a critical moment, with mortgage rates climbing sharply after escalating Middle East tensions sent borrowing costs higher across global markets.
Central to the recommendations is the introduction of a new initiative designed to tackle a critical issue facing many young people who are struggling to get onto the property ladder – student loan debt. In a bold move, a proportion of that student loan debt would be converted into equity to enable the purchase of a new first discount to market home.
Other measures from the report, which is comprised of leading figures drawn from across local government, the real estate sector and the policy world, have been packaged together under the banner: Rebuilding the Ladder: The report has been endorsed by more than 50 organisations across the housing sector, including housebuilders, trade bodies and local authorities that play a significant role in the housing ecosystem in London and across the UK. Supporters include Barratt Redrow, Vistry Group, L&Q, Zoopla and others.
The report recommends a series of targeted policy solutions for first-time buyers across both London and the wider country, underpinned by Pocket Living research from late 2025, which found that while 85 per cent of renters in the capital still aspire to homeownership, more than half (56 per cent) believe they will never achieve it. The publication comes at a moment of particular urgency, with UK lenders raising mortgage rates amid fresh warnings over inflation and energy prices, tightening the squeeze on a generation already struggling to get onto the ladder.
In addition, and in light of growing speculation around a new Help to Buy scheme, the report sets out two proposals designed to deliver a more balanced approach, both of which would require developers to contribute financially in order for their buyers to access the equity loan.
In total, the report sets out 13 separate approaches intended to inform future policy debates, each of which can be pursued individually.
A snapshot of some of the ideas:
- Greater innovation within the mortgage market to exempt first-time buyers from the 4.5 times loan-to-income cap.
- The development of a new equity loan scheme through the introduction of a 15% government equity loan for qualifying first-time buyers of new build homes.
- Creating a new Rent to Own Fund, funded by Capital Gains Tax receipts from existing landlords, to underwrite low-deposit mortgages that convert long-term renters into homeowners, and
- Further changes to the planning and regulatory environment to encourage greater flexibility in both tenure and developer contributions.
The report has been shaped by the Enfield First Time Buyer Commission, convened in early 2026 by Enfield Council and Pocket Living, which brought together cross-party politicians and industry leaders from across housing, finance, planning, and local and national government to develop practical policy proposals.
Councillor Ayten Guzel, X at Enfield Council, said:
“The Commission was established to examine the structural barriers preventing first-time buyers from accessing homeownership and to identify practical policy solutions. Our findings show that affordability pressures, mortgage constraints and existing debt burdens are increasingly preventing otherwise creditworthy buyers from entering the market. Something needs to be done.
“Our report, Rebuilding the Ladder, sets out a series of targeted proposals designed to expand access to homeownership while supporting the delivery of new homes. By bringing together expertise from across local government, housing, finance and development, the Commission aims to inform national policy discussions and help shape a more effective framework for supporting first-time buyers.”
Paul Rickard, CEO at Pocket Living, said:
“Pocket has always been at the forefront of developing innovative new ideas and solutions to increase homeownership opportunities for first-time buyers, often in close partnership with local authorities. We’ve been delighted to join Enfield Council in establishing this long-due Commission and to play our part in devising some genuinely bold and radical policy measures for the government to consider. From converting student loan debt into equity, reforming the mortgage market, and giving greater certainty to developers to develop, all of these strong recommendations have the potential to make a meaningful difference to hundreds of thousands of would-be first-time buyers across London and the wider UK.”