The Chancellor of the Exchequer is to announce measures in the Budget later today which will help first-time buyers and safeguard building industry jobs.
The initiative is called FirstBuy and is a replacement of the previous administration’s HomeBuy Direct.
According to the Financial Times it aims to help people buy newbuild homes rather than existing housing stock, thereby helping the housebuilding industry as well.
Under Firstbuy, first-time buyers whose income is below a certain point can get a 25% equity loan. 10% of this will come from the government and 10% from the housebuilder, with the buyers stumping up a 5% deposit. The remainder of the purchase price will be funded through a loan and savings.
Under the previous Homebuy Direct scheme, the housebuilder and the government each put in 15%.
The news will be welcomed by housebuilders, which have been forced to make up for the shortfall in government support by issuing own-brand shared-equity mortgages.