Industry and buyers get major boost from HCA
15 December 2008
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The Homes and Communities Agency (HCA) is set to pump more than £400m into the housing market through its HomeBuy Direct scheme, giving a boost to developers and first time buyers.
Housing Minister Margaret Beckett announced the funding package today (15 December) following the results of a bidding round that could see more than 18,000 new sale homes provided through 130 developers across England.
The homes will be available on a shared equity basis to first time buyers and people who are re-entering the property market, but with an income of less than £60,000.
HCA chief executive Sir Bob Kerslake said: “Our experience of other products such as the First Time Buyers Initiative and Open Market HomeBuy indicates that there is still strong demand from purchasers for shared equity products and HomeBuy Direct will significantly widen the choice of homes available on shared equity terms.”
He added: “The response to the bidding process from developers has been beyond our expectations, so much so that we have added more than £100m in additional funding to the £300m pot announced by government in September. This isn’t a case of developers just looking for cash, our investment partners have told us there is strong demand from families wanting to get on the property ladder but who need a bit of extra help. This funding will be another important stimulus to restore confidence in the housing market as well as adding more choice and opportunities for buyers.”
HomeBuy Direct properties will be available across every English region, including London, and will be split around 50:50 houses and flats. Buyers will be offered a 30 per cent equity loan, co-funded by the HCA and the developer to a maximum property value of £300,000.
The funding is the latest announcement to be made by the HCA in its first weeks of operation. Last week it outlined a package of options for Registered Social Landlords and other development partners eligible for NAHP (National Affordable Housing Programme) funding to help maintain and increase affordable housing capacity.
A list of the proposed allocations are available for download:
ENDS
For further information: Anne Kerin, HCA press office on 020 7881 1653 or email anne.kerin@hca.gsx.gov.uk.
Note to editors
- HomeBuy Direct was announced on 2 September 2008 and is part of the Government’s response to the current challenges in the housing market.
- The programme will make available more than £400million to assist more than 18,000 buyers into home ownership.
- £300 million of funding was announced by Government in 2008 and the HCA is providing more than £100m of additional funding through its National Affordable Housing Programme.
- HomeBuy Direct is a shared equity product and allows purchasers to buy a newly built home on selected schemes. The equity loan of 30 per cent is funded on an equal basis by the HCA and the selected developer. Maximum property value of £300,000.
- The HCA is the single, national housing and regeneration agency for England. We bring together English Partnerships, investment functions of the Housing Corporation, and the Academy for Sustainable Communities, with major delivery programmes of Communities and Local Government.
Our role is to create opportunity for people to live in high quality, sustainable places. We provide funding for affordable housing, bring land back into productive use and improve quality of life by raising standards for the physical and social environment