Labour forced into action on Help to Buy
Welsh Conservatives have welcomed the extension of the Help to Buy Scheme in Wales and say the announcement is the result of intense pressure from Conservative AMs.
The Conservatives’ Help to Buy scheme has helped thousands of hardworking families onto the housing ladder. It was brought in to help families struggling to save big enough deposits to get on the property ladder.
The UK Government’s scheme has two components.
- Equity loans - helping creditworthy households get an affordable mortgage; providing an equity loan of up to 20 per cent, so families need to secure a 75 per cent mortgage – making mortgage payments more affordable and helping someone buy a home with just a 5 per cent deposit.
- Mortgage guarantees - helping creditworthy households that only have a small deposit; many people can afford repayments on a mortgage, but only have a small deposit. The Help to Buy scheme provides mortgage guarantees so lenders have the confidence to offer 95 per cent mortgages to families who can afford the repayments.
Shadow Minister for Housing, Mark Isherwood, said:
“The Conservatives’ Help to Buy scheme has helped tens of thousands of hardworking families onto the housing ladder throughout the UK, but Labour came to the party late in offering support here in Wales.
“I am pleased to hear that the Welsh Government has finally listened to pressure from the Welsh Conservatives and confirmed that the scheme will be extended for the full assembly term beyond 2016.
“However, it is the UK Government’s decision to ring-fence capital investment for this scheme that has forced Labour ministers to act in the interests of Wales."