Insurance News Archive

First-time buyer scheme 'must be supported by lending'

Chancellor Alistair Darling's announcement that more money will be spent on the HomeBuy Direct scheme has been welcomed by experts.

Helen Adams, managing director at FirstRungNow.com, said it was good that the government had decided to increase investment in the scheme as part of the Budget, but added that this must be supplemented by increased lendings.

She explained there needed to be a backdrop of security of employment to support HomeBuy Direct.

"These tweaks are helpful, but they really need to make sure that people are secure in their employment and that lenders are lending," Ms Adams said.

She suggested that the low level of uptake for the scheme could be due to the difficulties first-time buyers have experienced in securing mortgage financing.

Mr Darling announced that a further £80 million will be contributed to HomeBuy Direct and reported that more than 32,000 people had enquired about the initiative since September 2008.

24 Apr 2009