HCA hands £100m boost to first-time buyers
More than £400m will be made available through the government’s Homebuy Direct scheme, up from £300m when the programme was announced in September.
Households with incomes below £60,000 will be able to buy a new home with the help of a shared equity loan, which will be partly funded by the government and the developer.
The loan, which will be free of charge for five years, can be used as a deposit and can cover up to 30% of the purchase price.
The maximum property value for the scheme will be £300,000. More than 130 developers have agreed to take part and ministers hope the scheme will help more than 18,000 first-time buyers.
Homebuy Direct properties will be available across every English region, including London, and will be divided equally between houses and flats.
Homes and Communities Agency chief executive Sir Bob Kerslake said there was a strong demand from buyers for shared equity products. He added: ‘The response to the bidding process from developers has been beyond our expectations.’
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