Public First calls for replacement equity loan scheme

The government should introduce a new equity loan scheme to help first time buyers onto the property ladder, according to policy and research consultancy Public First.

Public First’s new report – Saving the British Dream: Investing in First Time Buyers for Economic Renewal – supported by the Home Builders Federation, states that an equity loan initiative, part-funded by the industry and applicable for new homes, would boost rates of home ownership, housebuilding and economic growth.

The consultancy’s research shows that only 10.4% of 20-44 year-olds in England can afford a home, representing 610,000 individuals out of 5.9 million.

London has the lowest affordability at 4.9%, with the East Midlands and North East also harbouring low affordability levels at 4.1% and 5.1%.

Public First said a new loan scheme to allow more home ownership access should be modelled on Help to Buy, with a 5% deposit required and interest free loans available of 15-20% outside of London.

Its opinion research reveals that 69% of the public would support the reintroduction of an initiative similar to Help to Buy.

The industry would part-fund the loan, Public First said, to reduce the cost to the government, with the …