Fair shares?

A FORTUNATE 10,000 extra key workers will be helped on to the housing ladder under a deal announced today between the government and four mortgage lenders. The deal effectively doubles the Housing Corporation’s spending power under open market homebuy by offering public-private equity loans.

Housing minister Yvette Cooper told journalists at the launch of the scheme that a £150,000 mortgage for a key worker under the scheme would typically cost £700 month – as opposed to £950 in the open market. This is because the government and mortgage lenders will share a 25 per cent equity stake in the home, sharing in any rise (or fall) in the value. Go here for more information.#

The government remains convinvced that the long-term solution to housing affordability is to increase supply. In the meantime, those left behind by the housing boom will be wondering what will take off quicker: equity loans or house prices? See the next issue of ROOF for full analysis.