Loans of up to 30% of a homes value is just one of a raft of measures that are to be formally announced today. Under the scheme loans will be made for a period of up to five years, to families with an income of up to £60,000, after which the loan will have to be repaid and a "fee" will be payable, the level of which is currently unclear. This will be a joint inintiative between the state and large property developers and will be known as Homebuy Direct.
The Department for Communities and Local Government saidt that "not only will this help first-time buyers, but it will also support the industry by identifying buyers for their new homes." They added that " this will help the housebuilding industry weather difficult conditions, so that, when the market recovers, they are ready to expand and get back on with building the new homes the country needs for the long term"
