Press Release

Private sector competition will boost homes for first time buyers

27 July 2006

A  boost  for  first  time  buyers  was announced  today  (27 July) by the government’s  national  regeneration agency, English Partnerships.  Private developers  across  the  country  were  invited  to  put forward schemes to increase  the  level of affordable homes for first time buyers as part of a country-wide initiative.

The First Time Buyers Initiative (FTBI) aims to help first time buyers onto the  property  ladder with a target of delivering up to 15,000 homes across England  by  2010.   It  enables  eligible  first time buyers to purchase a minimum 50 per cent share in a new home.

English  Partnerships will make up the full price of the property by way of a  direct  payment  to  the developer.  First time buyers can then increase their  share  in the home at any time, and after three years, will start to pay a charge to English Partnerships based on the equity they don’t own.

To  achieve its goal of increasing the supply of affordable homes for first time buyers, English Partnerships will:

·     use the agency’s own programme;
·     work with other public sector partners to create new homes on surplus
public sector land; and
·   work with the private sector to deliver homes through their schemes.

English  Partnerships  is  now  seeking developers to be among the first to participate  in the scheme.  An initial budget of up to £100m over the next two  years  has  been earmarked to fund the equity gap of selling privately developed homes to first time buyers.

Yvette  Cooper,  Minister  for Housing and Planning, said, “We want to help more  families  get  that  step  on  the housing ladder.  15,000 first time buyers  will get the chance of a home of their own through this scheme.  We need  developers  from  all  over the country to come forward to help these first time buyers.”

Duncan Innes, English Partnerships’ Director responsible for the FTBI said,

“The  initiative  aims to give first time buyers their first step on to the property  ladder  by  increasing the supply of affordable housing for sale.

We want to help as many people as possible to take their first step towards full home ownership, and we want to be able to do that quickly.

“By working with private developers, and funding the gap between the market price  of  a  home  and the share that a first time purchaser can afford to buy,  we  hope  to  be  able  to  deliver homes swiftly at the same time as providing  certainty  to house builders.  We believe that demand from first time  buyers to purchase these homes will ensure they sell quickly.  It’s a win-win situation for the buyer and developer.”

Developers interested in taking part in the initiative are being invited to submit  details  of  their schemes in a competition-style process.  English Partnerships   will   assess  each  of  the  submissions,  favouring  those developments  that  are in areas of high unaffordability, will provide good quality  homes suitable for first time buyers, and will be available to buy shortly.

It is estimated that around 40 per cent of the target of up to 15,000 homes by  2010  will be supplied as a result of English Partnerships working with the private sector.

Interested  developers  have until Friday 15 September to submit details of their  proposed  schemes  to English Partnerships, with selected developers and schemes due to be announced later this year.