Osborne to extend help to buy to 2020
Published by Max Salsbury for 24dash.com in Central Government and also in Finance, Housing
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George Osborne has announced that he will extend the equity loan scheme aspect of the help to buy policy until 2020.
The scheme, which has so far helped over 25,000 households to afford to buy or reserve a new-build home, will see a further £6 billion in government funds invested into it.
The chancellor claimed that the move would lead to the construction of 120,000 new homes.
However, Labour’s shadow housing minister, Emma Reynolds, said: “We need a help to build policy to boost housing supply and tackle the cost-of-living crisis, alongside a reformed help to buy scheme.
"Failure to tackle this crisis will mean homeownership will remain out of reach of many low and middle-income earners, rents will continue to rise faster than wages and waiting lists will grow ever longer.”
Every home built under the equity loan scheme is a new-build home. Research has shown that the scheme currently supports up to 30% of all new build homes in England.
The help to buy: mortgage guarantee, the other half of the government's drive to promote homeownership, is unaffected by the change to the equity loan scheme.
Emma Reynolds MP added: “Labour is clear that you can’t deal with the cost-of-living crisis without building more homes. That’s why Labour has committed to getting 200,000 homes a year built by 2020, including by building a new generation of new towns and garden cities.”