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Firms aim to spur on shared-equity schemes

Industry figures want more innovation to drive forward the Home Buy scheme and shared ownership in general.

At the Cicero Consulting summit, John Charcol senior technical director Ray Boulger said lenders should make more of the opportunity to offer investment vehicles such as Reits alongside shared-ownership lending services.

Morgan Stanley chief economist David Miles said more risk-sharing between lenders and homeowners is needed.

He said lenders can create books of business that can be converted into securitised portfolios and potentially sold on to pension funds, depending on Government amendments, as well as getting first-time buyers on the ladder.

Boulger questioned whether shared ownership should have Government involvement at all or if greater incentives should be introduced to encourage private sector participation.

He called for the Government to relax the capital gains tax burden on parents who take shared equity in their child’s home.

Joseph Rowntree Foundation director of policy development Anthony Barnett said the charity was seeking Office of Fair Trading approval to offer loans covering an extra 25 per cent for Home Buy.

Yorkshire Building Society head of mortgages Rachel Court said the next step would be for lenders to develop their own versions of Home Buy.

Scottish Widows Bank head of product development and marketing Murdo McHardy said: “It is encouraging that the Opposition is calling for shared-equity schemes to be extended. The main barriers to these schemes is availabil- ity and the complexity from a customer perspective.”

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