The Conservative Party is considering the reintroduction of the right-to-buy scheme and widening of shared ownership for first-time buyers if elected into government.
Speaking at a Conservative Party first-time buyers summit yesterday, organised by PR consultancy Cicero, Tory leader David Cameron said a homeowner “revolution” was needed to help young people onto the property ladder.
More specifically, without actually citing it as that, he suggested a return to the right-to-buy scheme – described as “rent to own” - in which “households could turn their rent payments into mortgage payments, and so in time social tenants would own their homes”.
Officials at Scottish Widows Bank attending the event say comments delivered off the cuff suggest the issue of first-time buyers will be a key focus for the Conservative party as well as an argument for the extension of the government’s current Homebuy scheme – allowing the homeowner to take out a mortgage for part of the property through Homebuy mortgage providers and pay rent for the remainder, but leaves open the option of buying additional portions of the property over time.
Comments made by Cameron mainly reflect plans for a return to plans for right-to-buy of council or housing association property, as he said:
"There is a huge gap opening up in our country, between those who have achieved the dream of owning a flat or a home, and those who although they are working and striving and earning can't see how they are going to be able to achieve that dream. "
“Isn't it time to look at a scheme where we can actually say to council tenants, housing association tenants, 'why not change your rent payments into mortgage payments, so that as you pay that payment over time you will own that flat, you will own that home'?”
Among his 10 proposals for the housing market, however, Cameron also suggested the Party should consider ways of opening shared ownership schemes to “a wider audience, rather than the small number of workers in the state sector at present, and end the scandal of new homes lying empty”.
He also added the Tories would continue to campaign against the introduction of the home information packs but would seek to promote e-conveyancing and greater take-up of the National Information Land Service to speed up the homebuying process.
At the same time, while there needs to be focus on building more properties for first-time buyers, Cameron added new home build needs to be directed towards tackling an under-supply of family homes.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Julie Henderson on 020 7968 4571 or email [email protected].IFAonline
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