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No Reduction In The Desire To Become A Homeowner

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By : Brazg Gavin    99 or more times read
Shapps said in his first speech as housing Minister:

"I don't agree with my predecessors that reducing homeownership might be a good thing," he said. "Most people still want to own their own homes and I want people to know that this government will support them in that."

Shapps mentioned that although leasing a house can offer a much better, more effective solution for a number of people, he believed many would like to get a foot on the property ladder.

"To help them we need to get the deficit under control in order to give confidence to mortgage lenders to lend again," he said, adding that responsible lending and responsible borrowing were two sides of the same coin. "Borrowers will need to demonstrate financial responsibility and lenders will need to support creditworthy homeowners."

Shapps said that the government intends to promote more house-building and would set up local housing trusts in order to do so; "to create local housing for local people." Plus, he added more; "The more power you give away, the more people will create change," said Shapps.

The decision of giving more power to the private sector and to the local communities is not totally on choice however. In his speech Shapps also confirmed that the government's available funds to help people own homes and provide affordable housing, with things such as shared title and rent-to-buy systems is not there anymore. "The cash for affordable housing has run out," he said.

His department will be checking out scrapping systems already in place but that aren't performing, that could consist of Social Homebuy enabling social tenants to buy their house straight up or under shared-ownership, and Rent to Homebuy making it possible for renters to pay decreased rent payments while they set aside for the deposit.

Shapps, in a speech extolling the value of homeowenrship and its positive effect, offered an olive branch to landlords by repeating the government's intention to discard ideas put forward by the preceding government for a national register of landlords, proclaiming that he did not believe in dealing with the private rented sector with unnecessary regulation. Landlords are extremely unfulfilled over the government's programs to enhance capital gains tax on some purchases to 40% or more, most likely simply because they would certainly pay the raised fee on selling their homes.

Altogether the only surprise in the speech was the outright confirmation that there will be no spending from the government on economical housing. Leaving it up to the private sector could be risky with confidence as low as it is currently, yet only time can tell.
Gavin Brazg is editor of - UK's largest free resource of free expert advice for UK House sellers.

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