View more on these topics

Labour to use Help to Buy Isa proceeds to build 125,000 homes

Labour has pledged to channel the proceeds from the newly-announced Help to Buy Isa into building 125,000 new homes for first-time buyers.

In a speech in Warrington on the weekend, Labour leader Ed Miliband promised to build at least 200,000 homes by the end of the next parliament.

He said he would make lenders that offered the Help to Buy Isa invest in new homes in return. He calculated the returns to be around £5bn, which would provide finance for 125,000 new homes.

The Labour leader also said he would issue a ‘use it or lose it’ warning to developers who hoard land and would create a “new generation of towns, garden cities and suburbs creating over half a million new homes”.

Miliband said: “There are now 11 million people who rent their homes, most of whom say they would like to buy. There are almost 3.5 million young adults living with their parents. If we keep going as we are, the average house price will be 14 times the average wage by 2020. No wonder people can’t get the start they need. There’s no bigger symbol that our country doesn’t work for working people than young people not being able to get a start with a home of their own. Our plan is the first real plan for housebuilding in a generation.”

In last month’s Budget, Chancellor George Osborne outlined plans for the Help to Buy Isa, which will launch in the autumn. The Government has promised to give first-time buyers £50 for every £200 saved in the Isa, to a maximum of £3,000, if they use the savings to buy a home.

Recommended

Brian-Murphy-700x450.jpg

Annual approvals dip but impetus returns

Mortgage approvals were down 11 per cent year-on-year in February, according to figures published last week by the Bank of England. Lenders approved 102,929 loans in February, down from 115,725 a year earlier. Gross lending was down 8 per cent over the same period, from £17.6bn to £16.2bn. The number of approved house purchase loans […]

Webster
1

60 seconds with… Gary Webster, head of partnerships, Equity Release Supermarket

You have just launched an online equity release service. Why now? We believe there is a gap in the market that needs a fresh, customised approach to servicing firms that want to share the growth and profitability of the equity release market but do not have the necessary permissions. Our research signposted that brokers were […]

Williams-Peter-700.jpg

Imla questions Labour house building plans

The Labour party’s plans to fund housebuilding through Help to Buy Isas may be unworkable in practice, an industry trade body warns. The party says it will use Isa funds to generate a £5bn Future Homes Fund to drive investment in new sites where local first-time buyers will get priority over 125,000 new homes.  Savers […]

Rookes-Caroline-MAS-2013-500x320.jpg

MAS halts TV ads as it cuts marketing budget by a third

The Money Advice Service will no longer run TV advertising campaigns, says chief executive Caroline Rookes as the organisation slashes its marketing budget by a third. The MAS’s 2015/16 business plan, published last week, revealed its marketing spend for money advice services has been cut from £13.2m in 2014/15 to £8.8m. The FCA confirmed at […]

Newsletter

News and expert analysis straight to your inbox

Sign up