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Government to consult with lenders on longer-term fixed mortgages

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  • 12/03/2020
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Government to consult with lenders on longer-term fixed mortgages
The government will be working with lenders to look at the benefits of a long-term fixed rate mortgage market, the Ministry of Housing, Communities and Local Government has said.

 

The potential to offer low-deposit longer-term mortgages will be examined by the government, following on from proposals made in its manifesto.  

The Ministry of Housing, Communities and Local Government (MHCLG) also wants to simplify the route to home ownership and make it more affordable with the introduction of a new national model for shared ownership. 

It said it wanted shared ownership to be “more consumer friendly, fairer and more accessible”, especially to those on lower incomes. 

Housing secretary Robert Jenrick MP said: “I want everyone, no matter where they live, to have access to affordable, safe, quality housing and live in communities with a real sense of place – as part of our mission to level up, unite and unleash the potential of this country.  

“We must think boldly and creatively about the planning system to make it fit for the future, and this is just the first step, so we can deliver the homes communities need and help more young people onto the ladder.” 

 

Launch of the First Homes scheme 

The government is considering partnering developers with local authorities to deliver the first wave of properties as part of its First Homes scheme over the coming weeks and months. 

The First Homes scheme was announced in December and will see first-time buyers be given a 30 per cent discount on new-build homes in their local area, lowering costs by an average of £70,000. 

 

Quicker planning process 

An “ambitious” planning white paper is set to be launched in the spring to modernise the country’s planning system and accelerate decisions. 

MHCLG said it would make use of new technologies to make it easier for communities to understand the planning system and have a say in decision-making. It also wants to support “beautiful design” in greener communities. 

As part of this, developers will be able to demolish vacant commercial, industrial and residential buildings and replace them with well-designed homes without getting delayed in a lengthy planning process, under new plans being consulted for the white paper. 

 

Other measures 

The government will publish a register of brownfield sites to map out unused land as part of plans to encourage councils to make the most of this land first. This will be backed by the £400m brownfield housing fund which was announced in the Budget. 

The number of homes needed in certain areas will also be reviewed with incentives to deliver properties in those parts of the country first. 

New rules will also be introduced to allow building upwards on existing buildings by summer 2020, including to extend residential blocks by up to two storeys. 

 

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