Lunchtime news Wednesday 27 February 2024

The buy-to-let property market is still bouyant according to the Council of Mortgage Lenders (CML). The number of buy-to-let loans rose by 23 per cent last year, and accounted for 10.3 per cent of all outstanding mortgages. Lending to such landlords is a lower risk than to homebuyers generally, the CML indicated, as buy-to-let landlords have a lower level of arrears and repossessions.

A new initiative is to be launched next month for key workers and first-time buyers to help them realise homeownership. The new scheme will replace the existing ‘Open Market Homebuy’ scheme which was launched in October 2006. The scheme was criticised for being too costly to attract first-time buyers, who had to obtain a mortgage for 67.5 per cent of the property’s value. The new scheme will allow buyers to take out a mortgage for half of the property’s cost, with the remainder financed by top-up loans funded in part by the government.

The House of Commons has been ordered to provide a detailed breakdown of MPs’ second home expenses under a Freedom of Information request. Following on from the public uproar when it was revealed that MPs can claim an allowance of up to £23,000 a year towards running a second home even if eligible for a grace-and-favour home, the Information Tribunal said yesterday that the laxity and lack of clarity in the rules compared badly with the commercial sphere or most other public sector organisations. The Commons Members Estimate Committee also announced yesterday that its review of MPs’ expenses will be completed several months earlier than planned.

More than 50 per cent of parents were seeing their savings used by their cash-strapped children who are struggling to cope with student debts, the high cost of living, and high property prices. Last year the figure was only 39 per cent being loaned or given money, but this year the figure has increased to 55 per cent, or an average £12,610 each. Paying off debt was the main reason for helping children or grandchildren, with help to buy a house second.

And finally, the free newspapers found all over the tube, train and bus network in London are finally being put to good use. Volunteers from ’Project Freesheet’ plan to gather 10,000 copies of the papers to build a house made entirely from the papers in order to stimulate debate about recycling and encourage people to keep their ‘house’ (city) clean, attractive and liveable.