Burnham announces scheme to help first-time buyers
Prime Minister Andy Burnham is introducing a new scheme to help first-time buyers get on the property ladder with an initial interest-free loan period.
Stock photo for illustration only, not from the actual event
- Prime Minister Andy Burnham announces a new scheme for first-time buyers
- The initiative includes an initial interest-free period for equity loans
- Further details will be revealed in next month's Budget
- Pre-registration is scheduled to open before the end of the year
Prime Minister Andy Burnham is set to introduce a fresh initiative designed to assist young people and those looking to secure their first property. The scheme specifically aims to support individuals who lack financial backing from their families, often referred to as support from the bank of mum and dad. The announcement came on the eve of the Labour Party conference in Liverpool.
According to Labour, the equity loan will feature an initial interest-free period. Additional specifics regarding the scheme are anticipated in next month's Budget, with pre-registration slated to open before the end of the year.
Stock photo for illustration only, not from the actual event
Mr. Burnham stated that an excessive number of young individuals are currently struggling with high housing costs, causing many to abandon hopes of ever owning a home. He emphasized that the government will step in to help more first-time buyers onto the housing ladder. Furthermore, the Prime Minister expressed confidence that the initiative will provide housebuilders with the assurance needed to deliver high-quality new homes across the country.
This policy mirrors previous government interventions, most notably the Help to Buy scheme launched in 2013 by then-Chancellor George Osborne, which allowed buyers to secure new builds with a 5 percent deposit and a 20 percent equity loan interest-free for five years. While reviving such shared equity models aims to ease homeownership barriers, data showing a decline in new housing construction highlights the ongoing challenge of meeting national housing targets.
Funding for the project is expected to be drawn from reprioritizing existing budgets, while housing developers will contribute to ongoing operational costs. Ministers have not yet clarified whether specific age restrictions or property price caps will apply to the scheme.
"Too many young people are struggling with the cost of housing, with many giving up hope of ever having a home to call their own."
Andy Burnham
The policy reveal arrived as Mr. Burnham arrived in Liverpool for his inaugural Labour Party conference as Prime Minister. Housing Secretary Angela Rayner noted that Your First Home will build upon lessons learned from past initiatives while retaining their core benefits. Meanwhile, BBC Verify data indicates a continued decrease in new home constructions during Labour's first year in office, following a downward trend that began under the previous Conservative administration.
Source: BBC Politics
Found something wrong in this article? Report an issue with this article
Comments
Leave a Comment