First Time Buyers
It has to be said that first time buyers have struggled in the UK over recent years with increasing property prices and mortgage companies now requiring such large deposits to secure a mortgage on a property. Affordable housing policies have been the focus of renters rather than buyers.
Developers to Provide Affordable Housing
David Cameron is about to change all that, we hope! As part of his speech at the Conservative Party Conference Cameron is set to vow to do away with property rules that require developers to provide affordable housing for rent. Cameron wants to change the UK’s property culture from one of “generation rent” to “generation buy”.
This will be achieved with new affordable housing legislation that will require property developers to build affordable starter homes for first-time buyers under the age of 40.
200,000 New Homes by 2020
This ambitions move from the Prime Minister is undertaken in a bid to deliver 200,000 new homes by 2020 in accordance with their housing policy.
“When a generation of hardworking men and women in their 20s and 30s are waking up each morning in their childhood bedrooms, that should be a wake-up call for all of us. We need a national crusade to get houses built. That means banks lending, government releasing land and, yes, planning being reformed.” says Cameron.
Requirements of Affordable Housing
The new affordable housing policy states that properties must be offered for purchase 20% below the market rate with the maximum price being capped to £250,000 outside of London.
I can sense the ripples of excitement from property developers, who could be fooled into thinking this is an opportunity to get their hands on affordable housing to make a fast resale profit. Sorry to burst your bubble but the scheme is to prevent these properties being sold for a fast profit.
It will be interested to hear the counter arguments to this proposed new scheme that is to be announced at the Conservative Party Conference today.
What do you Think?
Will this help to raise the numbers of homeowners in the UK? Or will it be detrimental to a nation of renters? Share your views in the comments.