Make Housing Affordable for first time buyers!

12.00.00am UTC (GMT +0000) Wed 13th Aug 2008

Cllr Iain Donaldson

Liberal Democrats on Manchester City Council have approached the ruling Labour Group with a novel way to help first time buyers get into the housing market, and at the same time help to reduce Manchester's staggering waiting list for affordable housing.

Last month Harriet Harman proposed to set aside £ 200 million for housing associations to buy unsold homes, but it is estimated that this money would only purchase an additional 1,500 nationally (at an average of £ 133,000 each).

Lib Dem spokesperson, Cllr Iain Donaldson, stated that "This is a drop in the ocean when it comes to tackling the shortage of affordable housing in this country and indeed in this City, and I believe that this money could be more effectively spent.

"The main problem for most people buying a first home, or in times of negative equity any home, is finding the deposit. For a property of around £ 110,000 which is the stated affordability rate for the City of Manchester a 10% deposit (the normal asking level) would be around £ 11,000. This means that in Manchester alone a grant of around £ 11,000, repayable if the resident moves in the first five years could make the same 1,500 homes affordable at a cost of £ 16.5 million.

Cllr Donaldson has received confirmation from his Labour counterpart that this scheme will be considered.

Cllr Donaldson added that "I understand that Liberal Democrat run Liverpool City Council have already approached the Government offering to pilot such a scheme, and I want Manchester to give serious thought to doing likewise.