Government Commit to Affordable Homes

Affordable Homes

11/04/2008

Grants of £1,500 will be given to qualifying first time buyers and key workers to help with fees and furniture under the new government affordable housing scheme it has been revealed.

A total of £3m has been put aside according to the government, enough for 2,000 people and will help with charges and furniture.

The part buy scheme known as the Open Market Homebuy Scheme (OMHB) allows those who qualify to take out a mortgage for a percentage of their home and then another loan – known as a shared equity loan – from the government and lenders to pay the balance.

Further to the OMHS the government has committed to confirming locations of surplus public sector land in order to develop 30,000 new, high level and affordable homes.

They have made a pledge to build a total of 200,000 new homes by 2016.

Philip Bullivant from the Conveyancing team at law firm Irwin Mitchell said: "These initiatives are welcome in the current climate albeit the overall issues concerning affordability and availability of funding would, it would appear, be far reaching and may require further short term government led initiatives and funding."