29 May

Property industry welcomes govt plans

Property industry welcomes govt plans

The opening of parliament has seen the new Conservative government outline plans to help improve the situation for those wanting to own their first home.

Details of a new scheme aimed at increasing the number of starter homes available to first-time buyers aged under 40 was revealed in the Queen’s Speech.

Property experts have welcomed the idea that more homes would be made available for 20 per cent less than the open market price.

It was also confirmed the existing Right to Buy levels of discount will be extended to 1.3 million housing association tenants and could see more people stepping on to the property ladder in the coming years.

Other plans include the use of the Right to Build scheme to help boost the country’s housing stock. This will ensure that local planning authorities will help more developers and self-builders identify plots of land that are suitable.

In addition, a register of brownfield land will be implemented to help ensure Local Development Orders are gained for 90 per cent of all suitable sites within the next five years.

Charles Haresnape, chairman of the Intermediary Mortgage Lenders Association (IMLA), stressed the new plans must be accompanied by attempts to ensure the mortgage industry is in a position to offer finance to potential buyers.

"If not, we will be left with more schemes that are implemented in a hurry with lenders and brokers having to play catch-up," he added.

"Reviving Right to Buy certainly promises another short term boost to home ownership, but there must be a more joined up approach to increasing the long term housing supply rather than focusing on short term demand."ADNFCR-1222-ID-801789163-ADNFCR

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