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Expert dismisses govt's FirstBuy property scheme
Posted by Helen Jones
A new government scheme designed to help prospective first-time buyers get their feet on the UK's residential property ladder will not work.
That is the opinion of Paul Holmes, chief executive officer of Firstrung, who has questioned the merits of the Conservative-Liberal Democrat alliance's FirstBuy initiative.
Yesterday (June 20th), the coalition released details of the £250 million scheme that has been created with the intention of aiding people wanting to own their home but who are unable to afford a deposit on a residential property.
This will involve the government teaming up with the relevant construction company to provide a 20 per cent loan to boost the purchaser's own contribution of five per cent on a new-build home.
However, Mr Holmes has labelled the idea "a whitewash" and insisted "it is of no help to the first-time buyer whatsoever".
He explained that it has been proven over time that the "worst possible decision" anyone could make would be to buy a new dwelling when "house prices are on a knife edge and about to fall".
21/06/2011 14:51
News category: Property