First time buyer scheme given cautious reception

02-Jun-2005

The government's plans to enter into joint ownership agreements with first time buyers has been given a cautious welcome by experts.

See what's in our unique, comprehensive and detailed joint ownership guide

Although many are of the opinion that ministers have made an important move to spark interest in the market from aspiring first time buyers, they are warning that it should not be considered by aspiring homeowners to be some kind of panacea.

Bringing the potential of joint ownership schemes into the public spotlight has been seen as a good move forward, because many first time buyers are not fully aware of the benefit of buying with friends, despite the range of creative mortgages now available to accommodate such arrangements.

Click here to find out about the finances of borrowing with friends

But Hometrack has warned that buying even 75 per cent of a property will be out of reach for many first time buyers, and as such it is an increase in affordable housing that is most needed.

Meanwhile, the Portman Group has claimed that the government's groundbreaking plans do not go far enough and are, in fact, "unambitious".

Portman's development director, Matthew Wyles, wanred: "At the levels proposed, the scheme will barely scratch the surface of the problem."

Therefore, while there is much to be optimistic about regarding the government's willingness to tackle the issue of getting on the property ladder.

Click here for our first time buyers guide

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