In particular, the CML looks forward to developing the work it has already begun with Government to expand the growth of schemes that will help buyers build up an equity share in their first home, as part of the wider process of encouraging the growth of sustainable homeownership.
At it continues its work with Government to develop a scheme that it hopes will enable lenders to make as full a contribution as possible, the CML is urging that the measures that are eventually introduced should be workable, simple and as widely accessible as possible. It looks forward to responding to the consultation paper launched today as part of its ongoing work with Government.
The CML has consistently argued that Government policy should do more to reflect the aspirations of people to homeownership. Its most recent research shows that 81% of people aspire to be home-owners, compared to the 70% rate that has so far been achieved. Helping people into long-term sustainable home-ownership not only helps fulfil the aspirations of voters but also delivers significant benefits for Government. In particular, home-ownership:
* gives people the chance to build housing wealth on which they may be able to draw later;
* offers the potential to reduce the extent to which they rely on welfare; and
* extends a form of tenure that is less expensive for the Government than providing subsidised rented housing.
However, the CML believes that, while welcome progress is being made, there are still details to be finalised before an expanded shared equity scheme can be successfully launched. It urged the development of a detailed project plan to ensure that the planned launch date of April 2006 is achievable and will be met.
Commenting on today's Government announcement, the CML's deputy director general Peter Williams said: "While the proposed expansion of shared equity through Homebuy is relatively modest, it shows a welcome commitment to expanding home-ownership that the Government and lenders can build on in future. Home-ownership will clearly be a key issue in the forthcoming general election, and encouraging the sustainable expansion of owner-occupation is a policy area that each of main political parties will need to address."
