First-time buyers, high streets, empty homes targets of Labour promises
Ahead of Prime Minister Andy Burnham’s speech at the party conference on Tuesday, the government has announced a trio of programmes to get the housing market moving, support community businesses, and bring vacant properties back into use.
First-time buyers
There is a new equity loan scheme in the works, with details due to be released at next month’s Budget.
However, some preliminary information has been shared by the Ministry of Housing, Communities, and Local Government.
The new loan programme will provide 20% government-backed equity loans, which will have an initial interest-free period. There loan will be contingent on the house buyer being able to pay a 2.5% minimum deposit on their prospective home.
There are a few other requirements for the loan. In addition to requiring participants to be a first-time buyer and have a 2.5% minimum deposit, the scheme will have household income caps and a deposit cap.
The loans will only available for those looking to buy new-build homes from a developer who has also signed onto the scheme.
To be part of this programme, developers will be making a financial contribution in order to cover the costs of the scheme.
£210m for high streets
Using money already allocated for high street regeneration, the government has established a trifecta of programmes for high streets. These are:
- The £125m Derelict Buildings Fund, which will enable local authorities to take vacant buildings, such as former shopping centres or cinemas, and turn them into community spaces and health centres
- £65m to revamp buildings loved by communities that are at risk of closure, such as pubs and sports clubs
- £10m for High Street Rental Auctions, which lets out properties that have been vacant for more than a year
- £10m for Co-operative Development Programme, which will help mayors and strategic authorities create co-operative businesses in their area
The £210m funding boost is part of the Place Regeneration taskforce’s programme, which is also crafting a strategy for town centres across England.
Empty Dwelling Management Orders reforms
Government has changed rules around Empty Dwelling Management Orders, which allows a council to manage empty homes, bringing them back into use for up to seven years. During this time, the property continued to be owned by the property owner.
There government’s two main changes to the programme are as follows:
- The time the property must be empty before an EDMO can be issued has been reduced from two years to six months
- Evidence proving anti-social behaviour on site or community support are no longer required
More work is being done to the EDMO programme, with the government looking to support councils who want to bring empty buildings back into use.
