A plan recently announced by Deputy Prime Minister Nick Clegg to help first time buyers get on to the housing ladder has been welcomed by Liberal Democrats in Chester.
The plans involve the taxpayer guaranteeing part of the mortgage of first time buyers on newly built houses. Currently, people buying a house for the first time have to put down a deposit which can be as high as 25%. The high deposit levels have been an impossibly high hurdle for many people wanting to buy their first home. With fewer people therefore able to buy, fewer homes have been built. “I know many young families feel that owning their home is beyond their reach because it will take years to save up the deposit that is demanded by the banks and building societies,” said Mark Williams. “As a result, many in Chester are living in private rented housing which has forced up private rents. Many now pay more to rent than they would if they were paying a mortgage. That makes it even more difficult to find the money to save for a deposit”.
The plans announced recently by the Government will see the taxpayer guarantee a small part of the mortgage. The banks will therefore be able to bring down the level of deposit demanded as people under this scheme will be less of a risk.
We need to get Britain building again. This plan will help boost demand for new homes and therefore boost jobs in Chester and Cheshire West.