Grant Shapps: Budget is a boost for first time buyers
- Published on Friday, 25 March 2011 11:53
- Posted by Scott Buckler
Housing Minister Grant Shapps has hailed a new scheme that will help 10,000 aspiring first time buyers get foot on the property ladder
It was announced in The Budget that the Government is to make £250 million available for a new FirstBuy scheme to help first time buyers who are struggling to purchase a new home, due to requirements for a large deposit.
Over the next two years FirstBuy will help 10,000 prospective first time buyers purchase new build homes, providing a shot in the arm for the construction industry.
Housebuilders will match the Government's contribution to the scheme, which will provide a 20 per cent equity loan to top up first time buyers own deposit of 5 per cent, enabling buyers to take out a mortgage for 75 per cent of the property.
First time buyers are vital for the housing market and for the sales of new build homes and Mr Shapps said that giving them a foot up onto the housing ladder goes to the heart of the Government's commitment to support aspiration.
Housing Minister Grant Shapps said:
"Demand for new homes is still growing, but last year housebuilding slumped to its lowest peacetime level since 1924.
"First time buyers are still facing huge difficulties - many young people are being forced to postpone homeownership until their thirties and creditworthy first time buyers on good incomes are missing out on the opportunity to enter housing market by the lack of a large cash deposit.
"By making up to £250 million available over the next two years for deposits on new build homes, this Budget shows that we are serious about sorting this out, and supporting our construction industry to build more homes, create new jobs and increase the pace of economic growth."
Loans will be free of charge for the first five years and repaid on resale of the property, with the funds recycled to fund more homes for the scheme. The first homes are expected to come on stream in September 2011.