29
Jul
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.
