The council's Labour Group housing spokesperson today welcomed the recent government announcement to invest around £6bn per year in housing and regeneration programmes. Coun. Tracey Simpson-Laing said the Government's priorities were for these resources to be targeted at :

• providing greater help for first time buyers
• help existing homeowners facing difficulties due to problems in the international mortgage markets
• keeping housing supply, particularly affordable housing supply, as high as possible during the current economic downturn in order to meet Government targets

She said:

"The recent Government announcement could be a real help for York residents trying to buy a home that is affordable. There is to be a new scheme entitled ‘Rent to Home Buy', to support first time buyers into affordable home ownership by renting first and buying later when they can find a suitable mortgage. Eligible households will be able to rent a new build property at less than the market rent for a pre-specified period. At the end of that time, or sooner if they are able, they will have the option to buy a share of the property through the New Build HomeBuy scheme. The affordable rent will enable households to save for a deposit, as well as an improvement in people's financial circumstances placing them in a position to enter home ownership.

"There is also a £510m funding pot to provide help to councils who are taking action to meet housing needs and to reward those putting plans and land allocations in place. To further help there has been the announcement confirming that more funding, beyond the £200m already allocated to buy unsold stock from house builders for affordable homes, could be made available to house builders, for properties in the right place, at the right price".

Coun. Simpson-Laing notes that the Government has also considered the house building sector in its proposals for the next year by announcing measures to assist cash flow for developers and to provide smaller sites for the market to reduce risk.

And the Government is also considering - in the medium to long term - how it can encourage new players and business models to the sector; support smaller and niche firms; and expand the role played by local authorities, housing associations and the community sector in developing sites. This will also include more flexible payments to incentivise starts in the housing market by giving the Housing Corporation the flexibility to increase the grant payable at the start of works on developments, which commence during 2008-09.

Coun. Simpson-Laing added:
"Finally, the Government is proposing new plans to work with housing associations and local government to examine proposals for a wider role for mortgage rescue schemes. Whilst the number of repossessions remains far below 1990s levels, both in York and across the country, the Government wants to ensure all necessary action is taken to help families who face financial difficulties with independent information and support they need with a £10m package of measures available to fund face-to-face debt advice provided by third sector partners".

"The Government is engaging with the mortgage industry on ways to work together to support households during this period of market turbulence. The industry is currently reviewing its voluntary arrangements for supporting borrowers, working with consumer groups, including debt advisers, providing updated debt information and proactively identifying at-risk borrowers facing repayment problems. It is also important that lenders continue to fulfill commitments under statutory regulation to treat their customers fairly and sympathetically, and that repossession is only considered as a last resort".

Councillor Simpson-Laing hopes that all political parties will be able to support these measures, for the good of York residents, by writing to the Housing Minister.