Wed 16 Jul 2008
Flint announces new housing scheme
Government plans to pilot a ‘rent first, buy later’ scheme to reinvigorate the housing market have been greeted with a mixed response throughout the industry.The Rent to Home Buy scheme, open to some would-be buyers in England with household earnings of under £60,000, would allow first-time buyers to rent homes at a discounted rate for two or three years, with an option to purchase 25% or more of the home, or to save money towards a deposit. The government is hoping that the scheme, which was announced by housing minister Caroline Flint (pictured) this morning, will rejuvenate the property market by helping 75,000 climb the first rung of the property ladder.
The proposed scheme may benefit more mobile buyers, says Sarah Webb, chief executive of the Chartered Institute of Housing (CIH). “Outright home ownership is a heavy commitment, and not right for everyone. Sensible savings schemes such as this which help people save a deposit and plan for home ownership should be the norm, not the exception.”
But many industry bodies feel the government has not gone far enough. “We have been warning the government for months now of the implications for the wider economy of not taking steps to address the situation in the housing market,” said Stewart Baseley, executive chairman of the Home Builders Federation. “We need coordinated and comprehensive action on three fronts. Firstly, to encourage mortgage lenders to start lending again, secondly a series of measures should be introduced to help first-time buyers back into the market, such as a stamp duty holiday or mortgage interest relief. Thirdly, we need to see interest rates trending down – and rates passed onto borrowers.”
Posted by Marc Da-Silva
in Caroline Flint, Chartered Institute of Housing (CIH), Home Builders Federation (HBF), News, Sarah Webb, Stewart Baseley on Wed 16 Jul 2008
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