the world of government home support schemes can be confusing because it’s an alphabet soup of initiatives
so you could be forgiven for shrugging your shoulders at the news of yet another offer to help first-time-buyers
but....
so you could be forgiven for shrugging your shoulders at the news of yet another offer to help first-time-buyers
but....
when the government offers first time buyers £100,000 (on average) off the price of a new build home it’s worth asking where the money is coming from
on the basis that you don’t get owt for nowt
so here’s a brief explainer
on the basis that you don’t get owt for nowt
so here’s a brief explainer
under the proposals buyers would get a 30% discount on the property
when time comes to sell, that discount would be locked in for perpetuity.
this would require the owner to get a valuation from a surveyor and sell the property at 70% of that figure to a new 1st-time buyer.
when time comes to sell, that discount would be locked in for perpetuity.
this would require the owner to get a valuation from a surveyor and sell the property at 70% of that figure to a new 1st-time buyer.
but who pays for initial discount?
at present developers strike “Section 106” deals with councils to fund new infrastructure at housing developments including affordable housing
that affordable housing is typically made up of “shared ownership” schemes or “affordable rent”
at present developers strike “Section 106” deals with councils to fund new infrastructure at housing developments including affordable housing
that affordable housing is typically made up of “shared ownership” schemes or “affordable rent”
under the new plans they could be eclipsed by First Home: today’s consultation will propose that 40-80% of Section 106 income would go towards the new programme.
Latest government figures from 2016-17 showed developers paid £4bn towards affordable housing via Section106 deals.
Latest government figures from 2016-17 showed developers paid £4bn towards affordable housing via Section106 deals.
why might a Tory government want to switch these funding streams from affordable rent/social housing to a first-time buyer programme?
a cynic might suggest that home owners are more likely to vote Conservative.....
a cynic might suggest that home owners are more likely to vote Conservative.....
Polly Neate, chief executive of homelessness charity Shelter, said the policy would “put at risk” the provision of new social housing for people who desperately needed it.
here’s today’s @FT story by me and @donatopmancini
ft.com/content/14d090…
here’s today’s @FT story by me and @donatopmancini
ft.com/content/14d090…
Kate Henderson of the
National Housing Federation:
“We are concerned this proposal could make it more difficult for housing associations & councils to provide homes for lower income families. We support efforts to increase home ownership but not at expense of those most in need”
National Housing Federation:
“We are concerned this proposal could make it more difficult for housing associations & councils to provide homes for lower income families. We support efforts to increase home ownership but not at expense of those most in need”
and here’s a fascinating story from last month about housing minister Esther McVey raising the red flag
dailymail.co.uk/news/article-7…
dailymail.co.uk/news/article-7…
