Budget 2013: Help-to-buy scheme welcome to aid those struggling to get on the property ladder
PUBLISHED: 15:01 21 March 2013 | UPDATED: 15:01 21 March 2013
First-time home buyers were given good news today as the Government outlined plans to breathe life into the ailing housing market and boost the construction industry.
A new help-to-buy scheme for those struggling to find mortgage deposits will include £3.5 billion for shared equity loans, and a Government interest-free loan worth 20pc of the value of a new-build house.
The Chancellor said the scheme will be available to everyone who wants to buy a home from next year.
A new mortgage guarantee, sufficient to support £130 billion of loans, will help people who cannot afford a big deposit.
The Government will also offer interest-free loans for five years for those wanting to buy new-build homes.
The loans will be available to those who can find a 5pc deposit with the loan worth up to 20pc of the value of a home worth up to £600,000 and repayable when it is sold.
Stephen George, managing-director of Lowestoft-based Badger Homes highlighted the current tough economic climate for builders which had forced his firm to spread its business south and west from their heartland.
He said: “Any help they can give is very important and very much welcomed.
“A lot of people aspire to have a new, energy-efficient home and if this enables them to move it will start a chain of events, freeing up homes for first-time buyers.”
Mr George said it was potentially enormously important not just to the housing industry but other sectors as well.
“When people move, they tend to buy new carpets and things like cookers and furniture,” he said.