In a recent meeting at the Fabian Society, the Communities Secretary, Ruth Kelly, revealed how the government was planning to help people onto the property ladder. The new plans will allow prospective homeowners to purchase shared equity housing by taking a 10 per cent stake.
More homes are needed to put this plan into action and Kelly has committed the government to 200,000 new properties a year by 2016. She aims to help people fulfil their dreams of owning their own homes and in view of the increase in house prices she is concerned that not enough people will be able to get onto the bottom of the property ladder.
Our view
The flexibility for tenants to buy their homes should not come at the expense of the much-needed affordable homes. Whilst it is a good idea in theory, the 200,000 new homes is the very minimum needed to contain house prices but it would not be enough to impact on them.