More first-time buyers will benefit from new equity loans

Since the launch of MyChoiceHomeBuy equity loans the Government has announced two ways in which it will reach more first-time buyers:

• Eligibility for all Homebuy schemes, including MyChoiceHomeBuy, has been widened to any households with annual incomes of £60,000 or less. Previously the schemes were mainly aimed at key workers and social housing tenants.

• An extra £100 million of Government funding is available to help people buy new build homes through Open Market Homebuy schemes, including MyChoiceHomeBuy.

L&Q broadly welcomes the moves, which were announced on 13 May by Prime Minister Gordon Brown with immediate effect.

Steve Nunn, Sales Director, explains that key workers and social housing tenants will still receive the highest priority: “We are still mindful of local authorities’ priorities and keen to engage with them in terms of implementing this new flexibility.

“Social housing tenants and key workers will always be prioritised but it is good news that we will have a clearer and more straightforward application process for customers and won’t have to turn away so many first-time buyers when they are clearly still unable to access homes on the open market.”

Housing associations, the Housing Corporation and private developers will be working together on promoting the new eligibility criteria. At this stage it is too early to gauge the impact on enquiries and applications. Steve says: “In order to manage the level of applications it will be absolutely crucial to work with our stakeholders.”

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