Govt set to unveil fresh plans to boost housing market

Prime minister David Cameron will announce plans to boost the housing market on Thursday, with a particular emphasis placed on first-time buyers.

Ideas are still being thrashed out, according to a report in the Mail on Sunday, although it is thought one idea is to extend the NewBuy scheme, where the state underwrites some of the risk of the purchase, by introducing a “buyers’ bond”.

In March, the Government launched its flagship housing scheme, NewBuy, in an attempt to boost the housing market. Under the scheme, announced in the government’s housing strategy last November, lenders will offer 95 per cent loan-to-value mortgages for new-build properties against a mortgage indemnity guarantee funded jointly by house builders and the government.

As part of the plans, Cameron will also announce a relaxation of planning laws, making it easier to build on the 6,000 square miles of Green Belt around towns and cities.