Today, Nicky Morgan is announcing how the Government’s housing policies are saving first-time buyers more than a third on the cost of a new home. And she is setting out our ambition to increase the number of first-time buyers by a third in the next five years.
We are committed to building a Britain where everyone who works hard can have a home of their own.
With Help to Buy, our Starter Homes policy, and our stamp duty cuts, we’ve done a lot to help first-time buyers. After the Budget there’s now even more support for them with our new Help to Buy ISA.
But while the number of first time buyers is rising as we recover from Labour’s Great Recession, we want more people to be able to own their own home. So we are setting an ambition to increase the number of first-time buyers by a third compared to the last five years. How we’re helping people to have a home of their own:
Our Help to Buy ISA to help people save for their first home. This new ISA will mean for every £200 a first time buyer saves, the government will give a bonus of £50, up to £3,000. For a basic rate taxpayer it’s the equivalent of not paying any income tax on £15,000 savings towards a first home – a 10 per cent deposit on the average cost of a first home.
Cutting taxes to help people get on the ladder with our stamp duty reform. By getting rid of the old system with one more like income tax, we have cut stamp duty for 98 per cent of those who would have paid it. If you buy an average priced home of £275,000, you now pay £4,500 less in tax.
Building 200,000 new Starter Homes for first-time buyers. We will allow 200,000 new homes to be built, double the original number, which will be 20 per cent cheaper than the market price and will be for first-time buyers only under the age of 40.
And we’ve introduced the Conservative Help to Buy scheme.
This has three parts:
o Equity Loans where Government provides an equity loan of up to 20 per cent so someone only needs to provide a 5 per cent cash deposit and can apply for a 75 per cent mortgage.
o Mortgage Guarantee where the Government guarantees the mortgages of those who can afford repayments, but who do not have a large deposit. This means lenders can have the confidence to provide sustainable 95 per cent mortgages.
o NewBuy Guarantee where people can buy a new build home or flat with only a 5 per cent deposit by allowing them to secure a 95 per cent mortgage. And whenever Labour promise anything about housing, remember:
Under Gordon Brown, they promised to build 240,000 homes a year but achieved barely half that number. In their last year, they only started on just over 124,000 houses.