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 Free loan boost for first-time buyers

 

Wednesday, December 01, 2004


The government is considering plans for interest-free loans to enable council and housing association tenants to secure deposits on their first private sector properties.

The scheme, being promoted by former Cabinet Minister Stephen Byers, could provide loans up to £38,000 in London and the south-east, tapering down elsewhere, but following discounts tenants already enjoy under the right to buy policy.

Being drawn up as a vote-boosting measure, the scheme could be included in the manifesto for the General Election.

Caroline Spelman, Conservative Shadow Secretary for local government affairs responded by saying first-time homebuyers were still let down by Labour who, she said, had deployed damaging tax policies which had knocked an entire generation of people off the UK housing ownership ladder.

The actual amount of interest-free loan given would mirror the discount available under the existing right-to-buy scheme but the money would have to be completely repaid when the property was sold on.

 
 
     
     
 

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