Government slated over housing grant scheme

Government slated over housing grant scheme

The government has been heavily criticised by political opponents over a new grant scheme for first-time buyers purchasing shared equity homes under the Open Market Homebuy scheme.

Prime minister Gordon Brown and housing minister Caroline Flint announced the scheme this week, which will give new buyers £1,500 towards their costs.

However, the size of the grants has been met with a negative response from the opposition.

Liberal Democrat communities and local government spokesperson Julia Goldsworth said the scheme was "tokenism of the worst kind" and claimed that the government had already spent £350 million on the First Time Buyers Inititative since April 2006 yet just 700 families had benefited from the policy.

Conservative Shadow housing minister Grant Shapps said: "The incredible thing is that stamp duty for first time buyers is already nearly £1,700 so the money pledged won't even cover that cost," reports Property People Portal.

The Conservatives have pledged to axe stamp duty for first-time buyers on homes worth leas than £250,000.

Those unhappy with the level of help given to first-time buyers may decide to explore the self build option instead.


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