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Last Updated: Wednesday, 25 May, 2005, 11:03 GMT 12:03 UK
New 'cheap' home sites unveiled
Prospective buyers viewing house
New homes may be built on former NHS or Ministry of Defence land
Three ex-NHS sites will be used to provide houses for about �60,000 each in a bid to help first-time buyers.

The three sites in the government scheme are: Renny Lodge in Newport Pagnell; Park Prewett in Basingstoke and Leybourne Grange in Maidstone.

They will provide 400 homes but the government has bought another 100 ex-NHS sites for the plan, where buyers only pay the construction costs.

A part-ownership scheme for first time buyers will be unveiled later.

Design competition

Chancellor Gordon Brown is anxious to ensure housing supply meets demand.

The government expects about 200,000 new homes to be built this year - the highest number for 15 years.

Analysts have warned the new demand this creates could lead the market to overheat unless more homes are built.

PERCENTAGE OF FIRST-TIME BUYERS
1984 - 50%
1994 - 55%
2004 - 29%
Source: Council of Mortgage Lenders

The government announced in April the first sites for the Design for Manufacture competition, where house builders are asked to design "high quality" homes for a �60,000 construction cost.

On Wednesday, it announced the names of three other ex-NHS sites for the scheme - more will follow next week and another 700 possible sites are being reviewed for the scheme.

Home shares

Later, Chancellor Gordon Brown will explain how the part-ownership scheme will work to help 100,000 first time buyers own a home.

Under the scheme, buyers would have to raise as little as half the cost of homes sold on the open market.

The remaining equity in the house would be shared by the government and the bank or building society, with the buyers paying a nominal rent on the part they did not own.

It would mean average monthly repayments on a �200,000 home could be cut by up to �372 a month.

Banks and building societies will help decide which are the deserving applicants for the mortgage help, but it will not be restricted to key workers.

HAVE YOUR SAY
The government should restrict the number of houses people can own
Simon Golding, Swansea

The help for first-time buyers has been welcomed by many housing experts but some charities believe there is too much emphasis on buying homes instead of social housing.

The housing market appears to be showing signs of a gradual slow-down, with recent figures putting sales in London at their lowest level for a decade.

Beatle's fears

Mr Prescott's plans to demolish homes in the North and Midlands of England has proved controversial.

Ex-Beatle Ringo Starr is worried his former home in a Victorian terrace in Toxteth, Liverpool is due to be knocked down - he says such houses should be refurbished.

His fears were backed by Conservative shadow local government secretary Caroline Spelman.

"Mr Prescott is happy to raze thousands of these homes to the ground, destroying the character of our northern towns and cities," she said.

But Housing Minister Yvette Cooper said: "Some areas have tried refurbishment before and still homes are left empty and not enough people want to live there."

Claims that Prince Charles is set to criticise the demolition plans have been denied by Clarence House.

Prince Charles will tell the Institute of Chartered Accountants: "Old, historic, characterful buildings are knocked down, even though in the longer term it would cost far less in financial, social and environmental terms to refurbish and convert them to other uses, such as residential and mixed use."

A spokesman said the comments were part of the prince's well-publicised broader philosophy on buildings and did not refer to knocking down old homes or one policy area.


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See inside one of the new housing developments



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