The Brits have targeted first home buyers with a sensible plan and gave the building industry a shot in the arm at the same time.
Something like this would do wonders for first homer buyers back here, and it is to be recommended to the powers that be as a worthwhile project to solve the ‘crisis’ we have in some areas of the market
Britain shells out for struggling home buyers
Britain launched incentives to help struggling home buyers as the government looks to support growth in a real estate market it sees as key to reviving the country’s ailing economy.
Finance minister George Osborne said Britain would commit £3.5 billion ($6.4 billion) over the next three years to shared equity loans for new-build homes worth less than £600,000, allowing buyers to purchase them with a 5 per cent deposit.
“For newly built housing, government will put up a fifth of the cost,” he said in a budget speech to parliament. That loan would be interest-free for five years and the scheme open to all buyers.
The British government will also guarantee £130b of mortgages from 2014 for three years, allowing banks to provide more loans to people without big deposits.
Britain’s housing market has been stuck in the doldrums for years, due to a combination of high prices, and stagnant incomes.
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