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TODAY'S OTHER NEWS

PM unveils mortgage and benefits review to boost homeownership

Boris Johnson has promised a review of the mortgage market and housing benefit rules to help more people to get on the property ladder.

The pledges came in a speech by the Prime Minister in Blackpool to outline support for people and businesses to navigate the cost of living crisis and boost economic growth.

In a speech heavy on promises for support on business and household costs but light on actual policy, Johnson outlined help with the highest “cost of household expenditure” – housing.

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Proposals include a “comprehensive review” of the mortgage market, reporting back this autumn, to give people better access to low deposit home loans and assess what the industry can learn from counterparts around the world.

He also hinted at long-awaited help for existing leaseholders to buy their freeholds at a large discount and confirmed rumours that Right to Buy would be extended to housing association tenants - with one home built for each that is purchased.

Johnson said the government will also look at how it can securitise the multi-billion pound housing benefits bill to build more social housing.
 

He said house prices have soared by 9.8% this year and are rising faster than wages, warning: “If you are one of the millions of people outside the housing market, the dream of home ownership recedes further into the distance every month.”

It comes just days after Johnson survived a no-confidence vote.

The vote was held on Monday and Johnson narrowly avoided an ousting, with 211 voting for him and 148 against.

  • Algarve  Investor

    "In a speech heavy on promises for support on business and household costs but light on actual policy"

    That's Johnson in a nutshell - devoid of substance. Come up with some fancy metaphors, bang his fist, raise his voice, say nothing of any value.

  • Matt Faizey

    Ahh, so the mortgage stress test is due to be removed or reduced.

    It's lovely and benevolent that a Gov who stoked the market into such an unaffordable state is now ensuring the bubble keeps inflating.

    Thanks.

    Much better than planning reform targeting build numbers to be slightly in excess of demand.

    But then the house builders would not maintain profits would they?

    Have home prices either falling against inflation or rising much much less than inflation by having supply match or exceed demand.

    That's the solution.

    Your job as gov is to plan to make that happen. It's pretty straight forward.

  • icon
    • G W
    • 09 June 2022 14:53 PM

    Be interesting if these promises spread across to renters in private sector?….. time to sell then

  • icon
    • S S
    • 09 June 2022 15:15 PM

    Selling social housing does not solve the problem - Wales and Scotland have STOPPED selling council/social housing off. The problem compounds - people buy house at discount - can't manage homeownership - sell house and go back on waiting list - the property may or may not end up in private hands or a Landlord but whichever, a needy family has taken a house from social housing, its not replaced and they end up back on the list for social housing!

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