The Government is expected to release a green paper today, which proposes allowing people to buy less than a fifth of a home to make it easier for first time buyers to get on the housing ladder.
Proposals in the green paper include a Government equity loan, which will enable struggling first time buyers to purchase 17.5% of a property, incentives for councils to find land suitable for development, and incentives for developers to meet agreed housing targets, according to national newspaper reports.
The Government is expected to set a target for 25,000 shared equity and shared ownership homes to be founded by the Housing Corporation.
The Government has also set tough targets for local authorities to find suitable land for development for up to five years in future, with funding held back for local authorities that do not comply. The green paper also proposes that central government should have the ability to override local authorities’ planning powers.
Developers will also be encouraged to build more homes, with those that comply receiving tax breaks, while those to fail to deliver on target will be punished.
The Government has also set out plans to build at least 70,000 affordable homes each year and 45,000 social homes by 2010.
However, some observers have criticised the Government for saying it will continue to build homes on flood plains despite recent heavy flooding in areas across the country.
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