Boris Johnson called on to offer more support for first-time buyers

London Councils has called on the Mayor, Boris Johnson, to work with the boroughs to develop a new shared-equity scheme for first time buyers in London.

The scheme is one of the proposals set out by London Councils in its response to Boris Johnson's draft London Housing Strategy and would form part of the Mayor's First Steps programme which aims to help those in the capital get onto the property ladder.

With lenders reluctant to give mortgages to first time buyers in the current economic climate and house prices in London remaining high, those wanting to buy their first home have limited options.
First time buyers often need to save up a huge deposit or have to restrict their choice to buying new build properties on a shared ownership basis.

London Councils is proposing a scheme which would lend buyers a proportion of the value of the home they wish to buy with little or no interest repayments for the first few years, leaving the buyer to obtain a mortgage to cover the rest of the cost.

As well as helping more people in the capital onto the property ladder, the scheme would have the bonus of allowing buyers greater choice over the home they could buy.

The organisation has also proposed that a Devolution Commission be set up by the Mayor, the Homes and Communities Agency and the boroughs to take forward the mayor's desire that boroughs have more of a say in housing matters in their areas.

London Councils Executive Member for Housing, Councillor Steve Reed, commented:
"We obviously support any measures taken by the Mayor to address the housing needs of Londoners in his draft London Housing Strategy but urge the Mayor to take our suggestions on board.

"Expanding the Mayor's First Steps programme with a shared-equity ownership scheme would alleviate some of the barriers faced by first time buyers in the capital, such as the need for a large deposit.

"We expect the Mayor to work with the boroughs to make those first steps into home ownership easier, giving more Londoners the opportunity to buy the home of their choice".