Housing centre stage in #aspiration budget

Housing took centre stage in the Chancellor's Budget last week. Here's a quick summary of the major renouncement:

Help to Buy - £3.5 billion Equity Loan scheme, helping home buyers with a 5% deposit access the funds the need to secure a bank mortgage. Under the scheme new and existing homeowners can receive a 20% equity loan that will help them buy a new build property, with the added boost to get house builders to get on and deliver new homes we desperately need.

At the same time a separate option, called Help to Buy: Mortgage Guarantee, will enable lenders to use Government-backed guarantees to offer £130 billion worth of mortgages with smaller deposits, as little as 5%, on new and existing properties.

Right to Buy- The Budget announced further boosts the scheme by: 
  1. raising the discount cap to £100,000 in London, from Monday 25 March, to recognise higher prices;
  2. lowering the eligibility criteria, so that tenants can apply to buy their homes after 3 instead of 5 years; and
  3. looking at ways to simplify the application process for tenants
This is extremely welcome and will be very good news for many social tenants in Westminster who have worked hard and saved but always found homeownership just out of reach with Central London prices.

Private rented homes - The Government’s flagship Build to Rent Fund will be dramatically increased to £1 billion to support the construction of new homes specifically for private rent. This is a Government investment with a commercial return for homebuilders struggling to finance ‘shovel ready’ building projects through conventional finance.

Affordable housing - Funding for the Affordable Homes Guarantees Programme to £450 million. Up to 30,000 affordable homes will now be delivered through the expanded programme, with all new homes started on site by the end of March 2015.

This entry was posted on Wednesday, 27 March 2013. You can follow any responses to this entry through the RSS 2.0. Responses are currently closed.