Goverment plans for the housing market

House Beautiful Editor Julia Goodwin talks to Housing Minister Caroline Flint

 
The House Beautiful Built to Last campaign has had a tremendous response. In July, the postcards sent in by House Beautiful readers were delivered to the Chancellor, whose office told us ‘We're exploring the case for additional VAT measures for refurbishment or renovations. We're confident positive news for home improvers will be announced in next year's budget. For details on how to join in with our campaign and register your vote online, click here...

 

 

 

As part of the House Beautiful Built to Last Campaign, Editor Julia Goodwin met with Housing Minister Caroline Flint to discover what's on the agenda for homeowners.

 

Q. What steps can mortgage payers take to protect themselves from repossession given the current difficult economic climate?

 

A. Thankfully, repossessions still remain really low compared with the early 90s - affecting just 0.23 % of mortgages. But obviously some people are more concerned about how they can manage their family finances at the moment. Firstly, I'd say speak to your lender early.  We're working with the industry to make sure that everyone in difficulty is treated fairly and sympathetically - repossession must always be the very last resort. Independent advice is also on offer through organisations like the Citizen's Advice Bureau. We've recently announced £10 million to help those groups make sure people get the practical advice and support they need.    

 

Q. How can our readers help their young adult children to get onto the housing ladder? With many of them leaving higher education with around £20,000 of debt, how reasonable is it to expect them to save for a 5% deposit when the average cost of a home is still around £248,000?

 

A. I know this is a huge problem. Around 40% of first time buyers under 30 now have to rely on help from friends and family to help them scrape together a deposit. In the long term, we've got a major housebuilding programme to help make housing more affordable. And in the short-term, we've got several new schemes to help people get their first foot on the property ladder through shared ownership and equity loans.  It means that people have the security and stability of homeownership but don't have to overstretch themselves. These schemes have already helped more than 100 000 first time buyers and key workers. And now all households with income under £60 000 who can't afford to buy in the private market, can apply. We've also got a really exciting new project in the pipeline where people will be able to rent their home at below market rates, so they can save up this extra cash and put it towards a deposit.The Energy Saving Trust website has lots of practical advice on saving both energy and money, with details of grants and funding available.    

 

Q. With house builders unable to sell homes, is there an opportunity for first-time buyers to get special rate mortgages on otherwise unsaleable homes?

 

A. There's no point in homes sitting empty when we know there are so many young people desperate for a home of their own. So what we're doing is putting investment into specifically buying up suitable unsold homes which can be used for the shared ownership schemes I was talking about before. We've already committed at least £200 million to this, and will spend more if the right properties are available for the right price. 

 

Q. What steps does the government plan to take to help homeowners to make eco improvements to their existing homes? The existing grant scheme is not universal and is complicated and time-consuming.

 

A. From 2016, we're going to make sure that all new homes are zero carbon. But obviously what happens to our existing homes is even more important. Lots of people are already incredibly enthusiastic about this - and we want to make it as easy as possible for them to both cut costs and their carbon footprint. One example is energy performance certificates, which tell people exactly where their homes waste energy and what improvements they could make. For example, just putting insulation in your loft could save around £155 a year - not to mention around a tonne of carbon dioxide emissions. The Energy Saving Trust website has lots of practical advice on saving both energy and money, with details of grants and funding available.     

 

Q. Will the government help to make the purchase of solar panels and wind turbines more affordable for average home owners keen to do their ‘green' bit? Are there other plans to help those on average wages to live a greener life at home?

 

A. I know that reducing energy use can be expensive, so we're asking energy suppliers to do their bit and help households out. The Government is already investing £3 billion over the next three years to make homes greener. We've already cut planning red tape for households. This means people will no longer need planning permission to put up technology like solar panels, saving time and money. And we're currently conducting a major review of our energy strategy for homes to identify what more we could do to help people. But of course, greener housing isn't just about everyone installing their own wind turbines. Small steps like turning off the TV make a big difference when everyone does it. 

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