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Government details plans to help homebuyers and build more homes

Simon Ward
by Lovemoney Staff Simon Ward on 01 February 2012  |  Comments 4 comments

Housing Minister Grant Shapps announces low-deposit mortgages won't just be open to first-time buyers and land for 80,000 new homes has been found.

Government details plans to help homebuyers and build more homes

The Government has announced more details of its schemes to help more people buy homes via low-deposit mortgages and build more new homes.

Housing Minister Grant Shapps said the NewBuy Guarantee scheme to help people buy new-build properties for a small deposit will be launched in March. The scheme will only require a deposit of £10,000 on new-build homes, regardless of whether the buyer is a first-time buyer or already owns a home.

What’s interesting about this is that it is now not just about helping first-time buyers, which is how it was promoted when the initial scheme was unveiled back in November. You can read more on the initial proposals in Government to help borrowers buy with 5% deposit.

The Government, builders and mortgage lenders will all join forces to underwrite these low-deposit mortgages. 

Shapps also said that he has identified enough Government land to build 80,000 new homes on. He is working with the likes of the BBC and Royal Mail to try and find land for an additional 20,000 homes by 2015.

He has also promised £45 million to help restart building at 18 sites where construction has stalled due to the economic downturn. This is projected to create 16,000 homes and up to 30,000 jobs.

In 2010-11, just 121,200 new homes were built, the lowest number in peacetime since the 1920s.

The Government will also local councils to keep the social rents they collect, instead of the money going to Whitehall. Grant Shapps said this will "give councils the freedom they need to build more homes in their area".

At lovemoney.com, you can research all the best deals yourself using our online mortgage service, or speak directly to a whole-of-market, fee-free lovemoney.com broker. Call freephone 0800 804 8045 or email mortgages@lovemoney.com for more help.

More: How to get a mortgage with a small deposit | How to stand the best chance of getting a mortgage

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Comments (4)

  • LandOfConfusion
    Love rating 39
    LandOfConfusion said

    So let me get this straight. The big few house builders have large (well huge...) land banks which they will not build on because land values have fallen and this is causing a shortage of new homes at a time of housing crisis. So to 'encourage' more house building the Tory's housing minister Grant “Status Quo” Snapps is going to ignore the fact that the Tory party receives some very nice donations from them and is now suggesting we should tax their undeveloped land?

    Oh hang on that's not right.

    What he's actually saying is that, despite the many respected commentators and economists who have argued and who continue to argue that house prices are way overvalued what he's actually going to do is extend the public purse to those looking to buy and underwrite their mortgages? Even those of so called 'investors'? And to encourage more house building he's going to shield the house builders from a potential reduction in profits by selling off public land to them? And do so quite probably on the cheap?

    I'm beginning to see why the Tory party is regarded by some as the party of big business.

    Report on 01 February 2012  |  Love thisLove  0 loves
  • silkycat
    Love rating 31
    silkycat said

    Tax developers land banks, and force a development timescale on them e.g. building must start within 12months from now or within "x" years of purchase, or risk forced sale/compulsory purchase on it.

    In addition offer incentives to build on brown field sites rather than constantly pushing to develop green field sites. This would also help to regenerate town centres most of which are in need of a boost just now. It would also help to avoid increasing traffic and transport problems.

    Wouldn't it be terrible if there were to be alternatives to putting money in the pockets of train companies and fuel producers.

    I wonder which political party they send their contributions to!?

    Report on 01 February 2012  |  Love thisLove  0 loves

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