Government Pledge To Help Lower Income Families Purchase Property
The Housing Secretary has announced plans to stimulate home ownership amongst lower income households through a number of reformed measures.
The Government has pledged to reform the shared ownership model, allowing for buyers to step up in 1% increments as opposed to the current model which restricts buyers to purchasing a minimum of 10% at a cost of up to £45,000.
Acknowledging an unfair restriction in available Help to Buy mortgage types, the Government also announced that they have taken out a loophole preventing Help to Buy owners from taking out a mortgage term of more than 25 years. The measure will enable homeowners to reduce their monthly repayments and make ownership more affordable.
The Ministry of Housing Communities and Local Government (MHCLG) is set to review the planning system. Robert Jenrick is keen to increase housing delivery and make home ownership more affordable for people looking to buy in locations they may otherwise have been forced to migrate away from.
Robert Jenrick MP, Housing Secretary, said:
“Building the houses this country needs is a central priority of this Government. We know that most people still want to own their own home, but for many the dream seems a remote one.
“My mission is to increase the number of homes that are being delivered and to get more young people and families onto the housing ladder, particularly those on lower incomes.
“That’s why I am announcing radical changes to shared ownership so we can make it simpler and easier for tens of thousands trying to buy their own home.
“Help to Buy, the cut to Stamp Duty and our home-building programmes are already making a real difference, but I am clear we need to go much further if we are to make the housing market work.
“I will be looking at ensuring young people from Cornwall to Cumbria aren’t priced out of their home areas and how we can build public support for more house building and better planning.
“This Government will help a new generation to own their home.”
Will these new measures help more lower income households gain a foothold on the property ladder?