Skip to main content

Affordable Housing

Volume 495: debated on Tuesday 7 July 2009

20. To ask the Secretary of State for Communities and Local Government what his policy is on the development of innovative financing schemes to support the purchase of affordable housing. (284359)

The Government’s HomeBuy scheme helps purchasers who cannot afford to buy a home on the open market. We have recently introduced two innovative products into the HomeBuy range in response to the current difficulties which potential buyers are experiencing as a result of the restrictions on the global supply of credit.

Our Rent to HomeBuy product allows households to rent a home from a housing association at below market rent for up to five years, enabling them to save for a deposit. The HomeBuy Direct scheme provides purchasers with an equity loan of up to 30 per cent. to purchase a newly built home from participating developers on specific sites. The loan is funded jointly by the developer and Government.