Chichester District Council voted against proposals to create a programme which would have helped at least 20 buyers with small deposits onto the property ladder, reports the Midhurst and Petworth Observer.
The scheme, which is not FirstBuy but a private contract, would have involved the council placing £1m of its reserves with Lloyds Bank which would have enabled the bank to offer mortgages at 95% loan-to-value using its Lend a Hand programme. Several councils already take part in the scheme.
However the plans were rejected with Cllr Tony Dignum claiming the scheme did not represent the best use of council funds.
“It doesn’t target those most in need and doesn’t represent good housekeeping of our assets,” he said.
Those in favour of the scheme said that at least 20 homes could have been purchased using the scheme.
Cllr Janet Duncton added that scheme would provide long term benefits to the local area.
“The more people we help with cost effective options the less people we have to support with more expensive options in the future,” she said.
“Helping people that are working will help not just them but small local businesses as well.”
The council said that the scheme would have benefitted few residents and that other options remained open to first-time buyers.
Last week Aberdeenshire Council said it was looking into the scheme as a way of alleviating the problem of high rents in the local area.
