Prescott: We will help extend home ownership

Monday, 24 January 2005 12:00 AM

The Deputy Prime Minister, John Prescott, has promised that Labour will help those on low and middle incomes to own their own homes.

Launching the Government's five-year plan John Prescott said that he was determined to tackle Britain's "chronic housing needs".

The latest Government initiative on affordable housing comes only a few days after a survey suggested that average income first-time buyers were unable to afford a home in 92 per cent of the UK.

The headline measure in the plan is a new Homebuy scheme, which will allow tenants of housing associations and local authorities to buy a stake in their rented home. If they chose to move, profits of any sale would be shared with the housing provider.

And Mr Prescott promised that revenue from the scheme would be reinvested in social housing to the extent that 10,000 extra social homes would be built a year by 2008.

Elsewhere, he said there would be 1.1 million new houses in the South East by 2016 along with "market renewal" programmes in the North and the Midlands to tackle the problem of abandoned homes.

But, the Deputy Prime Minister said that the Government would not be concreting over the countryside and there would be new measures to protect the green belt.

Launching the package, Mr Prescott said: "Tackling the nation's chronic housing needs and giving people more choice is not just about them gaining a roof over their head - it's about giving people a stronger financial future and ensuring greater social justice.

"We are offering the most comprehensive, fair and flexible policies ever to deliver sustainable homeownership. It means more first time buyers, more people in social housing and more key workers like nurses and teachers being able to get on to the housing ladder."

Jim Coulter, chief executive of the National Housing Federation, said he was glad that a return to 'Right to Buy' had been rejected as it would "divert resources away from building new homes at the same time as reducing current stock" whilst only reaching a small number of people.

Mr Coulter, said: "This voluntary equity share scheme will provide more choice for individuals and housing associations in broadening tenure and delivering sustainability.

"Housing associations want to promote flexible tenure and home ownership which is affordable, providing the chance to build communities for people on all incomes.

But, Barnardo's principle policy officer, Alan Coombe, said it was concerned about any extension of the right-to-buy social housing stock.

Mr Coombe, said: "It makes no sense to sell off current housing stock while families with children languish in temporary accommodation.It would be much better if the Government helped those tenants who wanted to buy a home to buy that home in the private sector."

He added: "Combating child poverty is one of Government's most laudable aims. We meet many homeless families who struggle to give their children the best start in life. But selling off any of the little social housing that remains does nothing to help, and much to hinder, the most vulnerable children and families."

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