First time buyers to see £500m aid package

14-Sep-2007

First time buyers struggling to buy property have received a major boost in the form of a £500 million funding initiative unveiled by the government today.

Housing and planning minister Yvette Cooper said that the money would be given to councils shown to be progressing well with the provision of housing and land in order to help first time buyers and families in such regions.

Ms Cooper added that she hoped the funds would act as an incentive to those councils who had not been so diligent in their efforts to free up land and boost building plans.

Councils will need to have identified ten years' worth of land that can be built on in future and five years' worth that is ready for new developments immediately in order to qualify for the Housing and Planning Delivery Grant.

"Families across the country need more affordable homes. We want to give more support to communities and councils who are doing their bit to deliver the extra homes we need," Ms Cooper outlined.

The government currently plans to build three million new homes by 2020 in order to help resolve affordability problems.

"First Time Buyers need all the help they can get," commented Helen Adams, managing director of first time buyers' advice centre FirstRungNow.com.

"The £500 million is welcome but unfortunately demand for help means it will soon be gone.

The government needs to take other interventionist measures to really help genuine first time buyers, and not property investors who are in a win/win situation whereas most first time buyers are in a lose/lose situation," Ms Adams added.

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