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Budget 2013: Help-to-buy scheme welcome to aid those struggling to get on the property ladder

15:01 21 March 2013

Archant

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.

4 comments

  • The Tories will keep rolling out stupid schemes like this until the giant Ponzi scheme that is the UK economy is deflated. People are still living beyond our means as the Chancellor borrows more and more money, he is totally insane House prices need to reduce by 20 to 30% so that they are affordable again without all these stupid schemes

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    Canaryinslovenia

    Saturday, March 23, 2013

  • This is brill. A mortgage guarantee scheme that will leave taxpayers £12 billion out of pocket if buyers default, and a 20% interest-free subsidy for any buy-to-rent entrepreneurs wanting to hoover up new builds. And who will be doing most of the building and selling, why its those bigtime nationwide developers who just happen to be tory-donors as well. They must be chuffed that billions of public mony will be used to boost their income, but that's the tory way: you chuck us some money and we will misuse public funds to see you right 100 times over.

    Report this comment

    Police Commissioner ???

    Thursday, March 21, 2013

  • Bo sucks to the Labour trolls Great idea lets get people owning houses It makes you feel good.and valued.Great move by Mr Osbourne,the rest can live in cheap rent council houses Ok

    Report this comment

    PaulH

    Saturday, March 23, 2013

  • George or Gideon Osborne as I prefer to call him, made one big fatal mistake when he became chancellor and that was that the standard rate of VAT would increase from 17.5% to 20% with effect from 4 January 2011. This increase totally killed the economy and will prove both his and the Tories downfall at the next election, mark my words.

    Report this comment

    John L Norton

    Wednesday, March 20, 2013

The views expressed in the above comments do not necessarily reflect the views of this site

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