29 Jul

Problems identified with first-time buyer scheme

Problems identified with first-time buyer scheme

A new government proposal to allocate more funding to buy unsold housing stock for use as affordable homes needs further consideration, a spokesperson for the Homeowners Advice Centre has said.

Al Elliot described the move as "a step in the right direction", but raised concerns about the location of the properties.

He commented: "It makes sense for the government to buy up housing stock that developers cannot shift, but will it not work out that most of these are the city centre 'luxury' type that have been hit most?"

Someone who is used to being in a low council tax band is likely to be unwilling to pay the higher rate that comes with city centre properties, Mr Elliot noted.

Instead, he suggested that a 100-year mortgage guaranteed by the government and able to be passed between generations could be the answer.

Housing minister Caroline Flint announced the Rent to Home Buy scheme in July of this year, which applies to all first-time buyers with a household income of less than £60,000 per year.

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