Labour outlines help for first-time buyers

Tuesday, 3 May 2005 12:00 AM

Labour today promised more help for young couples trying to get on the first rung of the housing ladder.

On the campaign trail today, Chancellor Gordon Brown said Labour would use a third term in Government to help a million more people own their own home.

Labour leader Tony Blair said he wanted to help couples who were trying to start a family but were struggling with high house prices.

Speaking in Gloucester, Mr Blair said it was not just a "London problem".

"In every part of our country, some of our young couples are finding it tough, really tough ... to afford the home they need," he said.

Mr Brown added that the Labour would release more public land - such as that currently owned by the NHS, government agencies and departments - to be used for house building.

It would drive down construction costs, and create more 'mixed communities' where council housing sat cheek by jowl with private tenanted housing.

The Conservatives have pledged to help first time buyers by raising the stamp duty nil threshold from £125,000 to £250,000 - freeing half a million homebuyers a year from the burden of paying stamp duty.

Under the plans, an average house buyer in Britain would be exempt from stamp duty.

Mr Howard said: "Life is a struggle for too many families in Britain today. Last year average incomes fell for the first time in a decade - thanks to Mr Blair's punishing stealth taxes. But it's not enough to criticise. It's time to offer practical help and that's what Conservatives will do."

The Liberal Democrats are proposing an extension of shared equity schemes, pooling houses for local first-time buyers, and raising the stamp duty nil threshold to £150,000.

Meanwhile, a poll for Yorkshire Bank found a quarter of first-time buyers have put their purchase plans on hold due to the uncertainty caused by the election.

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