Extra £100m for first-time home buyers
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Your support makes all the difference.The Government today pledged an extra £100 million to help first-time buyers get on to the property ladder.
Housing Minister Margaret Beckett said £400 million would be made available through the Government's HomeBuy Direct scheme, up from £300 million when the initiative was first announced in September.
More than 130 developers have also agreed to take part in the scheme, which enables households with incomes below £60,000 to buy a new build property with an equity loan.
It is hoped the scheme will help up to 18,000 first-time buyers, 8,000 more than first planned, as well as offering support to the housebuilding industry during the downturn by buying up unsold properties.
Mrs Beckett said: "For many young families who aspire to own a home, the difficulties in the housing market have made the step on to the property ladder that bit harder.
"This deal will give them more support and put their dream of becoming home owners within reach.
"At the same time, this scheme will also help developers to weather the tough times in the market, by protecting jobs and helping to keep business going."
Under the HomeBuy Direct scheme, first-time buyers will be able to purchase a new home from selected plots on certain sites in England with the help of an equity loan.
The loan, which will be funded in part by the Government and in part by the developer, will be free of charge for five years and can be used as a deposit. The loan can cover up to 30% of the purchase price of the property.
Eligible first-time buyers will be able to apply to take part in the scheme from early next year.
Stewart Baseley, executive chairman of the Home Builders Federation, said: "Today's announcement is very welcome and great news for home buyers and the industry alike.
"HBF has worked closely with Government to design a workable product for both customer and seller, and HomeBuy Direct will assist to both deliver desperately needed affordable housing, and protect house building industry capacity - so vital if we are to provide the houses we know this country needs in the future."
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