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Tories target first-time buyers with scheme to cut house prices

Prime Minister David Cameron has promised first-time buyers under the age of 40 a 20 per cent discount on their first home if the Conservatives win the general election.

Kicking off the Conservative party conference in Birmingham on Saturday, Cameron unveiled plans to build up to 100,000 “starter” homes on brownfield sites.

Cameron told the Daily Mail that homes would be made cheaper by exempting them from certain taxes and green targets.

The homes would also be exempt from section 106 agreements that require builders to create a certain number of affordable homes or invest in local communities.

Buyers under the new scheme would still remain eligible for the Government’s Help to Buy scheme offering a 20 per cent interest-free loan for five years with a 5 per cent deposit.

Cameron said: “I don’t want to see young people locked out of home ownership. We’ve already started to tackle the problem with Help to Buy mortgages – and these new plans will help tens of thousands more people to buy their first home.”

Labour leader Ed Miliband has pledged to build 200,000 new homes a year by the end of the next parliament and made new homes a central feature of his pitch to voters next year.

Cameron also announced a £300m crackdown on welfare payments by capping the maximum benefits bill per individual at £23,000, down from £26,000 today.


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There are 3 comments at the moment, we would love to hear your opinion too.

  1. what happens when they sell in the future? do they have to sell 20% under market value, pay 20% of the sale price to the goverment??

  2. The devil is in the detail…. All good political vote spin announcements…

  3. Or alternatively, not bring out the scheme, and begin to raise interest rates instead.

    Which, overall, will lead to more people needing to sell homes (through the inevitable chaos that will follow, but no-one wants to talk about yet), then level out the supply/demand price increase.

    But that won’t happen. Until the Government are ready.

    The borrowers, will, unfortunately, never be ready for it. Time for us to step up and warn them. Now.

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