Govt makes changes to planning and FirstBuy scheme

It has often been said that the government needs to make sure that it is doing more to boost the UK property market in times where it is struggling to stay afloat thanks to financial uncertainty.

One area where people are finding it hard in terms of coming into the market is that for first-time buyers. For example, in places like Guildford, Surrey, homes are now far more expensive than people can afford when compared to their relative wages.

Due to this, there has been a far lower number of first-time buyers being able to get access to a mortgage thanks to the fact that they cannot afford to raise a deposit which is typically 20 to 25 per cent of the price of their property.

The government is looking to address this, however, with its new plans for the property market. Prime minister David Cameron announced that in order to help bring an additional 16,500 new first-time buyers onto the property ladder, the government would be offering an extension to the FirstBuy scheme.

Under this project, first timers can typically get their hands on a brand new house with just a five per cent deposit. However, the new scheme will allow those struggling to raise a deposit at all the chance to get a 20 per cent equity loan from the government as a starting point for their mortgage application.

In addition to this, it is also looking to get more people back into building and improving their existing properties. This comes in the shape of a relaxation of the rules surrounding planning permission to allow people to build extensions to their homes that are up to eight metres for detached homes and six metres for others.

The advantage will be that for a limited period, there will be no lengthy planning permission to go through, making it a far easier process.

The prime minister said: "This government means business in delivering plans to help people, build new homes and kick-start the economy. We are determined to cut through the bureaucracy that holds us back."