§ Mr. Heddleasked the Secretary of State for the Environment if he will make a statement on the home loan scheme, indicating, in particular, the number of first-time buyers who have taken advantage of this scheme; and whether he has any plans to raise the price limit further.
§ Sir George YoungThe home loan scheme offers first-time buyers a loan of £600, interest-free and repayment-free for up to five years, and a cash bonus of up to £110. The main requirements of the scheme are that the first-time buyer has registered with a participating savings institution and then saved for at least two years, and is buying a house costing less than the price limit for his area. Separate price limits are set for each of the English regions, Scotland and Wales (and for the separate home loan scheme in Northern Ireland). The limits are set at levels which should allow about two-thirds of first-time buyers in each region to meet this requirement of the scheme. They are reviewed regularly and increased when necessary to meet this criterion. It is estimated that about 17,000 people have received benefits under the scheme to date.