We do not set budgets for individual low cost home ownership products, which fall within the Housing Corporation’s Affordable Housing Programme. Of the overall £8.4 billion budget available over the three years 2008-11, we have indicated that around £1.5 billion may be used for low cost home ownership. The overall funds available for 2011-12 will be subject to decisions made at the next spending review.
To the end of September the Housing Corporation has spent a total of £180 million on low cost home ownership schemes in 2008-09.
On 2 September we announced a further £300 million over the next two years (2008-10) to help up to 10,000 first time buyers through the new shared equity scheme HomeBuy Direct. This scheme is designed to sell unsold properties that house builders have been unable to sell. The scheme will be offered on specific new build properties brought forward by developers. Buyers will be offered an equity loan of up to 30 per cent. of purchase price, co-funded by Government and the developer.