The Government have announced there will be a £280 million boost for first time buyers involved in the FirstBuy Scheme.
The FirstBuy Scheme was introduced in September 2011 to help first time buyers purchase a property. The scheme allows qualifying buyers to buy a new-build property with a mortgage of just 75% of its value. Buyers have to put 5% down as their deposit. The Government and builder together provide a loan which allows them to own 20%. Once the buyer has decided to sell, the Government and builder are repaid a percentage of the sale.
Purchasing a property at this current time is difficult for potential homeowners as a 10% deposit of the property is needed in order to secure the property. A typical deposit ranges from £8,000 - £10,000 depending on the value of the property which could take months to save up, which is why the FirstBuy scheme makes it easier for potential buyers.
The scheme has already proved to be successful after helping 100,000 first time buyers in the UK and now with the extra funding a further 16,500 buyers will be helped to purchase their first home. The boost is also hoped to help sales within the property market.
Other housing plans have also been announced to help the housing market including a £300 million fund to deliver 15,000 affordable homes. Planning authorities who perform poorly will be placed on special measures and fast track for commercial and residential applications.
Deputy Prime Minister Nick Clegg commented: “This is a Coalition Government, determined to get on with the job of delivering a healthier economy.
“The major boost to housing and planning will make it easier to build a home and easier to buy a first home. A boost that will get Britain building again. Building thousands of affordable homes and generating thousands of new jobs.”
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By Amanda Bainbridge