Government outlines plans to help first time buyers

24-Jul-2007

Housing minister Yvette Cooper has announced details of the government's plans to help first time buyers via £8 billion worth of housing reforms.

Warning that average house prices could come in at ten times a first time buyer's salary within 20 years if changes are not made, Ms Cooper revealed that 14 new independent Community Land Trusts would be set up to help address local issues.

The government would also look to stop the practice of 'landbanking', whereby land that could be used for housing is instead sat upon by developers.

Shared ownership initiatives and grants to boost land supply to councils shown to be performing well will also be pioneered, with a total of 45,000 new social homes aimed to be delivered each year by 2010-11.

"The housing shortage means first time buyers and young families are finding it increasingly hard to get their first step onto the housing ladder unless they have financial help from parents or relatives - and that's just not fair," Ms Cooper commented.

"Every part of the country needs more affordable homes - in the north and the south, in urban and rural communities," the minister added.

First time buyers currently pay an average of 3.37 times their income to take out their first mortgage, it was recently revealed.

'Having waded though the most relevant parts of the Housing Green Paper published yesterday I am pleased to see a diverse approach to helping first time buyers to purchase their first home," said Helen Adams, Managing Director of FirstRungNow.com.

"This government under its new leader has a real opportunity to engage with today's Britons and show then they genuinely do believe in home ownership for all and not just helping fuel property capitalism," Ms Adams added.

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