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Mayor of London pledges to expand shared equity scheme

Mayor of London Boris Johnson has pledged to expand a shared equity scheme helping first-time buyers in London.

Visiting the offices of the Coreco Group this morning to discuss apprenticeships Johnson pledged his support for home ownership.

The Greater London Authority runs the First Steps scheme alongside housing providers, L&Q and Metropolitan Home Ownership working on behalf the Homes and Communities Agency.

The scheme aims to help first-time buyers take an equity stake in their home and get their first foot on the ladder in private or social housing.

Speaking to Mortgage Strategy Johnson says: “First Steps has helped about 25,000 first time buyers to get a share of the value of their property.

“They haven’t been able to buy the whole house necessarily but they have been able to take a share. I believe if people want a share in their own home then that is a good thing and we should try to encourage it. The scheme is going to be expanded and encouraged.”

Johnson was paying a visit to the mortgage broker to encourage financial services firms to take on apprenticeships in the way the Coreco Group has done.

He was accompanied by deputy mayor Kit Malthouse and both spoke to staff about the state of the mortgage market and how businesses can take on apprentices.

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  • Tom Cleary 31st May 2012 at 12:38 pm

    Very well said Jake, I could not have put it better myself. I have just employed a Trainee Mortgage Consultant, maybe Boris would like to come to my office too??

  • Jake 30th May 2012 at 2:13 pm

    It never fails to amaze me how people can think these type of schemes are a good idea. The sad truth is that some people simply can’t afford to enter the property ladder, and encouraging them to buy a stake in a property is more likely to limit their social mobility and reduce their changes of getting better paid jobs; limiting their chances of ever being able to afford to buy further stakes in the property.
    Also with falling property prices these poor people get trapped with negative equity in properties from the outset.
    This scheme is designed to keep house prices high for the benefit of existing home owners. There must be a better solution.

  • Jake 30th May 2012 at 2:03 pm

    It never fails to amaze me how people can think these type of schemes are a good idea. The sad truth is that some people simply can’t afford to enter the property ladder, and encouraging them to buy a stake in a property is more likely to limit their social mobility and reduce their changes of getting better paid jobs; limiting their chances of ever being able to afford to buy further stakes in the property.
    Also with falling property prices these poor people get trapped with negative equity in properties from the outset.
    This scheme is designed to keep house prices high for the benefit of existing home owners. There must be a better solution.