The Prime Minister has today unveiled a number of new measures to increase home ownership, ease the cost of living and ‘turn benefits to bricks’.
Here, Barnfields explains what has been promised by Boris Johnson and how this might affect anyone looking to move home in the future…
· Right to Buy to be extended to housing associations – currently just available to those renting through local authorities, this means that anyone renting through a housing association will have the option to buy their property at a discounted price, and with one new social housing property to be built for every one sold.
· Comprehensive review of the mortgage market – the Government wants to make it easier for people to get a mortgage, so their review, which will report back in Autumn 2022, will look at how to give aspiring homeowners better access to low-deposit mortgages, helping lenders to recognise creditworthiness of tenants who pay rent on time, and making sure the self-employed can also get the mortgages they need.
· Lower paid workers to be able to use housing benefits to buy a home – the Prime Minister wants to change the rules on welfare so that those who receive housing benefits have the choice of using it for rent or putting it towards a mortgage, essentially ‘turning benefits to bricks’. Johnson announced that Lifetime and Help to Buy ISA savings may be exempt from eligibility rules to ensure those on benefits can continue to save without their benefits being affected.
If you’d like to understand more about the various routes to home ownership, please contact your local Barnfields branch here.