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Budget 2011: Govt confirms £250m scheme to help first-time buyers

Chancellor George Osborne has confirmed plans to launch a £250m scheme to help first-time buyers raise a deposit for a home.

Giving his Budget speech today, Osborne said the shared equity scheme will help up to 10,000 first-time buyers raise a deposit for a home, confirming reports published earlier today.

The scheme, which is available on new build properties only, will see the Government and house builders offer first-time buyers a low interest loan of up to 20 per cent of the value of the property to help with raising a deposit.

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There are 5 comments at the moment, we would love to hear your opinion too.

  1. Jacqueline Fullarton 23rd March 2011 at 1:29 pm

    Good news for first time buyers re the shared equity scheme, it is a shame lenders do not want to commit the scheme, previous scheme “Homebuy Direct” was a success but only three lenders really “committed” to lend

  2. A N other mortgage broker 23rd March 2011 at 1:36 pm

    Unfortunately its a good idea but I predict it will be a failure as the last ones did, as lenders won’t support it without a deposit from borrowers.

  3. I think he’s missed an opportunity by restricting the help to new properties. If there was FTB help to purchase ANY property it would have a knock on effect to second,third etc buyers, it would help them too and the economy. By restricting it to new build he will only assist the house builders!

  4. Bring back the MIG and insure any lender liability above 75%. This will allow FTB’s to enter the market. Simples..as they say

  5. This is a thoroughly bad idea. Government meddling in any market inevitably leads to distortions and unintended consequences – we have seen it all before.
    In this instance to try and prop up an overvalued and unbalanced property market will lead to more distortion, opacity and cost for hard pressed property owners. The winners? – developers, lawyers and money lenders.
    Until some reality returns to valuations and construction cost (relative to affordability at the bottom end) or some control over land ownership (including price controls) the new buyer or renter will continue in a life of misery as he sees the major part of his income removed from him in putting a roof over his head.

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