Government announces new housing measures to help with home ownership

Today, the Government has revealed a number of measures to help increase home ownership in the UK, as well as easing the cost of living and offering support to those on housing benefits.

Ashley Adams explains how the Prime Minister’s announcement may affect those looking to purchase their first home in the future...

·         Lower paid workers to be able to use housing benefits to buy a home – Those who receive housing benefits will now have the choice of using it for rent or putting it towards a mortgage, in the change of rules on welfare. The Prime Minister is naming this ‘turning benefits to bricks’ and also announced that Lifetime and Help to Buy ISA’s may be exempt from eligibility rules to ensure those on benefits can continue to save without their benefits being affected.

·         Right to Buy to be extended to housing associations – Anyone renting through a housing association will have the option to buy their property at a discounted rate. This is currently just available to those renting through local authorities, and one new social housing property is promised to be built for every one sold to ease the lack of social housing stock.

·         Comprehensive review of the mortgage market – the Prime Minister aims to help people get a mortgage more easily, and says a report on the industry will be delivered in autumn 2022. This will look at offering more help to those who are self-employed, better access to low-deposit mortgages, and helping lenders to recognise tenants who pay rent on time.

If you’d like to understand more about the various routes available to home ownership, please contact your local Ashley Adams branch.