Scott Bingham The Politics Show South West

Government to help 35,000 people onto the property ladder

Struggling first time buyers in the South West were given a boost in the budget with the news that the Government is putting nearly �1bn into helping people get on to the property ladder.

Chancellor Gordon Brown announced increased investment of �970m to help 35,000 people onto the property ladder through its Shared Equity Taskforce.

But some within housing circles feel he is just making the right noises and there is nothing new behind the announcement.

The South Hams is one of the country's affordable homes hot spots.

The average home here costs nearly �270,000 and the district council has made the provision of affordable housing one of its top priorities.

"We are grateful for anything that is available and we have always been very diligent in pursuing it where we can," said Cllr Isabelle Steer, the council's executive member for housing.

"There maybe one or two tweaks, but a lot of this has been known before."

The Chancellor announced that first time buyers could purchase as little as 25% of properties.

The housing association Tor Homes, which provides affordable housing in the South Hams, has been offering shared equity deals at this rate for some time.

"Any amount of funding available for affordable housing is good for housing associations, but this is probably insufficient.

"It is a drop in the ocean," said David Norman, Tor Homes Operations Director.

Kate Shute, her husband and her baby daughter, are looking forward to moving into a shared equity home on a new development in East Allington in the South Hams in May 2006.

They are purchasing 25%, but hope to buy more as their financial circumstance improve.

"It is perfect for us. We are so happy that we have finally got something that is ours and we can say that we have finally got a foot on that ladder," said 27-year-old Kate.

A spokesman for the Treasury said that further details of its Shared Equity Taskforce would be announced later this week.

But St Ives MP Andrew George said he was sceptical there would be anything new behind the announcement.

"The Chancellor has made great play of investing nearly �1bn in shared equity schemes, particularly in rural areas.

"But when one looks at the background figures, you can't find where that money is to come from.

"I suspect it is recycled old money," he said.

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