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Taxation: Housing

Volume 494: debated on Monday 15 June 2009

To ask the Chancellor of the Exchequer (1) whether each of the banks in which the Government has a shareholding makes it their policy to offer mortgages to buyers seeking to participate in shared (a) equity and (b) ownership schemes; (275662)

(2) which of the banks in which the Government owns a shareholding offer mortgages for purchases of properties under shared ownership schemes.

Decisions concerning whether to engage in lending to support shared equity of shared ownership remain commercial decisions for firms. Where there is public sector investment in banks these stakes are managed on an arm's length and independent basis by UK Financial Investments Ltd.

The Government remain committed to the delivery of affordable housing, including through both shared equity and shared ownership schemes. The Homebuy Direct scheme, introduced in 2008, offers households equity loans of up to 30 per cent. of market value, and co-funded by Government and developers, to buy a new build property.

At present Homebuy Direct is supported by a number of banks in which the Government have made investments, including Halifax (as part of Lloyds Banking Group), and RBS. Northern Rock is discussing participation with the HCA.