Budget help for first time buyers

In the March 2011 Budget, the government announced plans to provide £250,000 through a shared equity loan programme called "FirstBuy" in order to boost construction and sale of new homes. 

The programme is expected to fuel the construction of some 10,000 new homes. Equity loans of 20% of the cost of the relevant properties are proposed, which will be jointly funded by the government and housebuilders, interest free for the first five years and repayable upon resale of the property. A 5% deposit will be required from the purchaser.

The proposals have been broadly welcomed by those involved in the housing industry.