The Prime Minister has unveiled a five-point housing programme as the final theme in the Conservative general election manifesto.
David Cameron made a speech at Colchester-based property marketing agency Think BDW earlier this afternoon.
The Conservative party leader has said he wants to do more to allow people to buy their own homes by providing more affordable housing in the form of 200,000 starter homes which would be capped at £250,000 outside of London.
Starter homes would be made cheaper by reduced red tape, such as removing any obligation to give local authorities financial contributions to fund schools, health care and roads in the area known as section 106 money or the Community Infrastructure Levy in some areas.
He also pledged to continue the Help to Buy mortgage scheme, allowing first-time buyers to only find a 5% deposit, and the Right to Buy initiative for people to buy the council home they live in.
Mr Cameron outlined five key pledges during today’s event.
The five Tory commitments are:
1) Keep mortgage rates low
2) Build 200,000 new starter homes for first-time buyers under 40
3) Extend the Help to Buy scheme to 2020
4) Backing Right to Buy and provide more security for those who rent
5) Give local people more control over planning and protect the Green Belt
Mr Cameron said: “There is a particular kind of security that comes with owning your own home. Too many people have been denied that security.
“The young people in their 20s and 30s still living with their parents, desperately saving for their own place.
“The couple who want a child but can’t afford to upsize, even though they both have full-on, full-time jobs.
“It shouldn’t be this way.
“Our goal is a Britain where everyone who works hard can have a home of their own.”
Responding to concerns that even £250,000 would be too high for people on average or below average wages in the region he added: “We have strict rules about affordability and making sure people don’t take on mortgages they cannot afford, and that is one of the reasons we are seeing a sustainable housing boom.
“There are couple earning £25-30,000 who can’t get on the housing ladder, and that’s where Help to Buy helps them.
“The mortgage payments are about the same as their rent, and Help to Buy helps them with their deposit.
“No-one wants to go back to 105% mortgages and Northern Rock.
“People using Help to Buy have got reasonable jobs and are working hard.”
Commenting on social housing he added: “Up to now there has been a lot of market housing for sale and social housing for rent. I want to see more housing that us affordable for people to buy, and that is where starter homes can make such a big impact.”
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