aboutproperty.co.uk Logo
 | News feeds | Join the mailing list | Make Homepage

Property news

Share equity schemes opened up

Wednesday, 14 May 2008 14:32
Brown announces first-time buyer help
Buyers earning less than £60,000 will be able to take advantage of the government's share equity scheme, Gordon Brown announced today.

The prime minister said in the draft Queen's Speech £100 million will be made available to shared equity schemes under the Homebuy programme.

He told parliament: "£100 million pounds for shared equity schemes to allow more first time buyers to purchase newly built homes on the open market; and for the first time an offer of shared equity housing open to applications from all first-time buyers, subject to a household income limit."

The scheme allows buyers to purchase a percentage of a property – renting the remaining part from a housing association. Currently it is only open to key workers.

Under the scheme, a household with an income of £32,000 could afford a house of £200,000, paying £760 each month - as opposed to £1,350 without the programme.

Furthermore £200 million will be made available to the Housing Corporation to buy new properties on the open market, either to be made available for first time buyers to purchase through the HomeBuy scheme or for social rent.

The Open Market HomeBuy scheme will also be expanded so more households will be able to take advantage of a shared equity loan, to buy a new build property on the open market.

Under the plans, buyers will be able to identify the home they wish to purchase from a developer and then apply for support from the homebuy scheme.

Housing minister Caroline Flint said: "Most families aspire to get onto the housing ladder, but are being priced out of the market. We want to give them the support to help them buy an affordable home.

"The long-term solution to the challenge of affordability is to build more homes. But in the meantime, we are doing more by giving more first time buyers the chance to boost their purchasing power and put their dream home within reach."

However, the move has been called an "empty gesture" by homebuilders.

"These proposals are nothing more than an empty gesture and will do very little to increase activity in the market or to ease the current plight for first-time buyers," said Ian Baker, managing director, Galliford Try Homes.

"An allocation of £200 million will only equate to a tiny percentage of new homes and instead I would have liked to see some more practical, meaningful steps taken by government to really assist today’s buyers."



Comment on this story 

  • There are hundreds of young couples not arbritarily described as 'key workers' or in 'social need' living in crowded conditions with family or in expensive rented accomodation. Many have reasonable household incomes (£25k-45k) but in many areas need help to get on the housing ladder. Merely allowing such couples to apply to the same unexpanded & totally inadequate fund in competition with the existing categories of need does nothing to address the problem. The latest annoucement, as in so many government initiatives, seems to promise practical help but on closer analysis lacks any real substance.
    G. Bates
Share your views with the aboutproperty.co.uk readers.
Name 

Location 

Email 

Comment 

Enter the text shown to the right

Marketplace 

    From builders and DIY suppliers to decorators and garden supplies, home finance to heating and plumbing services, home furniture to accessories, bathrooms, bedrooms, kitchens and a whole lot more.

    Whatever you’re looking for you’ll find it in the aboutproperty marketplace – your gateway to all things home and garden related.

Free Property Finder Service 

    Click here for your free easy to use Property Finder Service to search for properties that meet your needs overseas.

For your free guide to investing in uncertain times click here.

Features 

Overseas property 

Property finance 

Forthcoming property shows