First-time Home Buyers (Hansard, 20 November 1986)

§ Mr. John Patten

The Government have given many tenants of public authorities the opportunity to become home owners for the first time. Over 1 million dwellings in Great Britain have been sold by public authorities since the Government took office. The Housing and Planning Act 1986 will improve the terms of the right to buy by allowing higher discounts (up to a maximum of 70 per cent.) and by reducing the period of liability to repay discount on resale from five to three years.

The Government have also introduced measures in the Housing and Planning Act 1986 which will encourage the 261W expansion of shared ownership by making privately financed housing association schemes more feasible. The Government are encouraging building societies and other lending institutions to take up these funding opportunities using new forms of finance currently being developed. In this way people who might not otherwise be able to afford to buy homes will have the opportunity to do so. This could prove particularly helpful to first time purchasers in the south of England.

First-time buyers may qualify for benefits under the home loan scheme. Provided the savings conditions are fulfilled, the scheme can provide a loan of £600 free of interest for up to five years and a bonus of £110 to first-time purchasers buying a house within the regional price limits.

Mortgage interest tax relief is available on the first £30,000 of a mortgage loan; and no stamp duty is payable on homes costing £30,000 or less. The Government have also encouraged competition in the house buying system. The reduction in the cost of buying a house resulting from these measures will benefit particularly first-time buyers.