First time buyer news: Doubts over 'jigsaw housing' grow

15-May-2006

John Prescott's "home challenge" will do little to deal with Britain's housing affordability crisis, according to one expert.

Joe Martin, executive director of the Building Cost Information Service comments that half of the properties of the size specified were built for less than the target £60,000, reports the Telegraph.

Mr Martin went on to say that the main issue with affordable housing for first-time buyers in the UK is lack of land and planning restrictions.

First time buyers can make buying a new home affordable through a 'gifted deposit' scheme whereby a deposit is not required just the cost of professional and arrangement fees of £5000

It is thought that many of the winning homes in the deputy prime minister's competition will be sold at market value.

However, Mr Prescott's original plan was to create two-bedroom houses of a certain size for under £60,000 in order to increase the amount of cheaper housing across the UK.

Mortgage lenders have risen to the challenge of creating a growing number of options for first time buyers.

Russell Legg, managing director of Crest Nicolson's Chiltern region and part of the winning SixtyK consortium commented on the competition.

The company's winning design is made of Standard Insulation Panel (Sip) boards which slot together like a jigsaw puzzle. The house has all the plumbing in one area to reduce costs.

Aspiring first time buyers considering affordable housing options should work with a good mortgage broker.

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