Andy Burnham’s new Help to Buy-style scheme ‘set to be made extra beneficiant’ to assist hundreds extra
In an interview with the Mirror ahead of Labour’s conference last month, the PM revealed his plans for a new package to help first-time buyers without access to the ‘bank of Mum and Dad’
‘Your First Home’ scheme will help first-time-buyers who would struggle to afford a deposit to get on the housing ladder with a deposit of just 2.5%(Image: In Pictures via Getty Images)
Andy Burnham’s new Help to Buy style scheme is reportedly set to be made more generous to help more people onto the housing ladder.
It comes after the Prime Minister revealed his plans for a new package to help first-time buyers without access to the “bank of Mum and Dad” in an interview with the Sunday Mirror ahead of Labour’s conference last month.
Dubbed ‘Your First Home’, the government said it would help young people who would struggle to afford a deposit to get on the housing ladder with a deposit of just 2.5%.
It had been reported the scheme would be subject to a household income tax of £90,000 outside London – and rising to £110,000 in the capital – but concerns were raised that it could shut out some middle-earners.
According to The Times, the Chancellor is now set to increase the earnings cap to £110,000 outside London and £140,000 inside the capital in a boost to thousands more first-time buyers. The Treasury has been contacted for comment.
Unveiling the scheme last month, Mr Burnham told the Sunday Mirror: “We are coming back at this whole question of helping first-time buyers onto the housing ladder, particularly those who can’t call on the famous bank of mum and dad.
“So we’re looking at what was the Help to Buy scheme, which obviously had an impact, but was it as focused as it should have been? We coming back with a proposal that we think will really help those young people who might struggle otherwise or not be able to get on the housing ladder otherwise.
“Of course, the housing world is really desperate for a scheme of this type to stimulate building. So I’m pretty proud of the scheme that we’ve brought forward.”
Developers would pay a fee to allow first time buyers to purchase new build homes helped by a 20% government backed equity loan, with an initial interest-free period to ensure housing costs are affordable.
The reports come as John Healey gears up for his first Budget as Chancellor next week and after setting out plans to cut back on “form-filling and pointless paperwork” that aim to cut some £800 million worth of red tape for businesses.
The measures are designed to give businesses “breathing space” and as the Prime Minister meets small business leaders at No10 North on Friday. In a statement this morning, Mr Burnham said: “If you run a business, you want to spend your time serving your customers, creating jobs and growing your. firm, not filling in unnecessary forms.
“It’s not right that pointless bureaucracy gets in the way of people working hard to build something that matters to their high street. So we’re getting government off their backs and giving businesses the breathing space to grow. Because when businesses succeed, they create good jobs, strengthen their communities and bring growth to every part of the country.”
Mr Healey said: “British firms are fed up with form-filling and pointless paperwork that eats into valuable time and money when they simply want to get on with running their businesses. That is why we are cutting unnecessary bureaucracy and giving businesses the breathing space they need to invest, innovate and create good jobs.”
