Government supports first-time buyers with £100m
In its most recent attempt to revive the UK housing market, the Government has pledged an extra £100 million to help first-time buyers.
Housing Minister, Margaret Beckett, is increasing the budget of the HomeBuy Direct scheme (which was set up in September) from £300 million to £400 million.
To date, over 130 developers have signed up to the initiative, which is open to households with incomes below £60,000.
Social tenants, key workers and other first-time buyers who meet the criteria can buy a share of a property with an equity loan of up to 30% of the purchase price.
The loan, which is funded jointly by the Government and the developer, is interest free for the first five years and can be used as a deposit.
The additional £100 million could help 8,000 first-time buyers take advantage of the scheme, which originally aimed to help 10,000 households get a foot on the property ladder.
The extension of HomeBuy Direct will also help housing developers, whose plummeting private sales have forced a shift in focus towards building for the social housing sector, albeit a less profitable area of work.
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