The Council of Mortgage Lenders welcomes the announcement by the Deputy Prime Minister and the Chancellor of the Government’s commitment to encourage the expansion of home-ownership.
In particular, the CML looks forward to developing the work with the Government to expand the growth of schemes that will help buyers build up an equity share in their first home, as part of the wider process of encouraging the growth of sustainable home-ownership.
It also looks forward to responding to the consultation paper launched today as part of its ongoing work with Government.
The CML has consistently argued that Government policy should do more to reflect the aspirations of people to home-ownership. Its most recent research shows that 81 per cent of people aspire to be home-owners, compared to the 70 per cent rate that has so far been achieved. Helping people into long-term sustainable home-ownership not only helps fulfil the aspirations of voters but also delivers significant benefits for Government.
But the CML believes that, while welcome progress is being made, there are still details to be finalised before an expanded shared equity scheme can be successfully launched. It urged the development of a detailed project plan to ensure that the planned launch date of April 2006 is achievable and will be met.
CML deputy director general Peter Williams says:
“While the proposed expansion of shared equity through Homebuy is relatively modest, it shows a welcome commitment to expanding home-ownership that the Government and lenders can build on in future. Home-ownership will clearly be a key issue in the forthcoming general election, and encouraging the sustainable expansion of owner-occupation is a policy area that each of main political parties will need to address.”