The Government announced measures to support key workers and other first time buyers into affordable homeownership.
New cash grants of £1,500 will be offered to buyers who take up a shared equity loan under the Government's Open Market Homebuy scheme (OMHB).
The new grants will help key workers taking up OMHB with the costs associated with setting up a new home - such as solicitor's charges, fees, and furniture. More than £3 million has initially been earmarked for the first wave of grants.
Under OMHB, key workers can boost their purchasing power by up to 50%, following the launch of two new shared equity mortgage products announced in the Budget. This means a household with an income of £32,000 could afford a house of £200,000, paying £760 each month - as opposed to £1,350 without the scheme.
The new grants will be available to buyers who take up the two OMHB products now available:
Both loans are open to social tenants, key workers and qualifying first-time buyers. They can be used alongside a deposit and be repaid early - in part or in full - or when the property is sold.
The Government announced that it will be confirming the locations of surplus public sector land sites that will provide 30,000 new homes, many of which will be affordable. English Partnerships, will set out the brownfield sites from its programme, such as former coalfields and surplus local authority land, that will be used to deliver the homes.
Developers bidding for the sites, which will go through the full planning process, will have to provide a high level of affordable housing, and build to high environmental standards under the Code for Sustainable Homes, with all homes being 25% more energy efficient than those previously built.
The first eco-towns took a step closer to becoming reality, as Housing Minister Caroline Flint today announced 15 potential locations will go forward to the next stage, providing the opportunity for a boost in affordable housing whilst tackling climate change.
Based on an evaluation of the bids, the Government announced that no new homes would be built on Green Belt land. In addition, more than 30% of the overall new houses will be affordable housing.
Publication of the shortlisted locations reveals good use is planned for previously developed brownfield land, including former MoD land, military depots, disused airfields and former mining pits and industrial sites. The shortlisted locations address regional priorities, such as a severe shortage of suitable housing or the regeneration of former industrial areas.
More than 40 proposals have not been taken forward for being undeliverable or not ambitious enough to meet the high environmental and affordability standards set by Government.
To ensure the final eco-towns incorporate the best and most innovative proposals for sustainable living, a panel of experts will work with developers to improve their plans. These will be leading figures from the fields of climate change and sustainability, energy, planning, transport, and business.
Shortlisted locations now face further challenges including public consultation and a detailed Sustainability Appraisal which will assess the merits and challenges for each one.
The final schemes being promoted will have to reach zero carbon standards by promoting leading edge green technologies, provide high levels of affordable housing, demonstrate how they will deliver key infrastructure such as good public transport, schools and health facilities and safeguard local wildlife.
Eco-towns will be the first new towns since the 1960s and will tackle the combined challenges of climate change, the need for more sustainable living and a real shortage of housing for families and first-time buyers.
With new communities being designed from scratch, eco-towns will also present an excellent opportunity to incorporate the best standards and latest developments in public services at the very heart of these new communities.
