CONSERVATIVES in the Ribble Valley have welcomed Prime Minister David Cameron’s proposals to help first-time buyers and those seeking affordable rented accommodation.
Coun. Ken Hind, senior vice-chairman of the Ribble Valley Conservatives, said: “Local research carried out by the Litchfield Partnership for Ribble Valley Borough Council indicates the 18 to 24-year-old age group are leaving the Ribble Valley to seek cheaper housing areas.
“We should be looking to help house the children of families brought up here, who want to stay. Recent affordable homes built in the various parts of the Valley have been snatched up and these measures will help this important group. It will enable villages to flourish where it is important to keep open the village schools, shops, community facilities and local pubs.
“The strategy will break the current cycle in which lenders won’t lend, builders can’t build and buyers can’t buy. Where developers are planning to build in the Ribble Valley we should be pressing them to be part of the government programmes to help first time buyers and help those in need of affordable rental accommodation to find a home.”
Under the new proposals, the Government will make it easier for people to secure mortgages on new homes, help people to get on the property ladder, address unfairness in social housing and ensure homes that have been left empty for years are lived in once again.
At the heart of the strategy is a new build indemnity scheme which will give a helping hand for up to 100,000 prospective buyers who are currently frozen out of the housing market because of the need for large deposits. Under the proposals, homebuyers will be able to secure loans on newly-built homes – the bedrock of the first time buyer market – with only a 5% deposit.
The Government and housebuilders will help provide security for the loan, so if the house is then sold for less than the outstanding mortgage total the lender will be able to recover its loss. Through the scheme, lenders will be encouraged to offer mortgages with smaller deposits, increasing demand for new homes and giving a welcome boost to the housing market.