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LEP Business Commentary
Communities Secretary Hazel Blears has put a new shared equity scheme called HomeBuy Direct at the heart of the Government’s measures to help first-time-buyers get on the housing ladder.
That loan, which is jointly financed by the Government and the housing industry, will allow people to buy up to 30% of the equity in a new-build home.
Hazel Blears says it will help up to 10,000 first-time buyers over the next two years.
The recognition that people need help has to be applauded. But I think the Government has more work to do to explain to people how they can benefit from its HomeBuy Direct initiative.
There is also a degree of scepticism as to how effective shared equity schemes are and over the actual take-up rates of earlier, similar initiatives.
We introduced a Rent To Buy scheme at The Room Apartments in Preston this month, which allow people to rent a property for a period before committing to own it.
We believe this is simpler to understand and offers would-be buyers a clearer and easier way to become first-time owners.
The beauty of it all for those taking advantage of this scheme is that they won’t be paying ‘dead rent’ and will be saving for their deposit.
From the developers point of view it is a real way of ensuring properties are not standing empty and shows a commitment to first-time buyers and to driving the market forward.
We think more Rent To Buy schemes like ours could make a real difference in lifting the market. Developers need to show commitment, initiative and innovation.
The Government has also announced that properties costing less than £175,000 will be exempt from stamp duty for the next 12 months.
This measure is going to help first-time buyers, particularly in places like Preston, and that is to be welcomed.
The very real need to assist people as they look to buy their first home is something everyone recognises.
The effect on the market remains to be seen and we hope the Government will continue to look and search for further measures to help the first-time buyer and to give the property sector the support it needs.
The importance of property-led regeneration in cities like Preston can not be underestimated.
There is an opportunity for high quality residential development in Preston in the next decade transforming the city centre into a place people want to live.
For this to happen the Government needs to help first-time buyers, and developers will also need encouragement ??" from the council and its planning officers.
The Times - http://property.timesonline.co.uk/tol/life_and_style/property/buying_and_selling/article4824318.ece