We’ll help more to own their home, says PM

THE Prime Minister pledged yesterday to finish the ‘right to own’ revolution started by Margaret Thatcher as he called for more families to have access to 5 per cent mortgages.

In his first policy speech since surviving Monday’s vote of no confidence, Boris Johnson promised to make it easier to become a homeowners by reducing the deposit needed to buy a home to 5 per cent of the cost.

Mr Johnson admitted that the requirement to have a large deposit meant it was a ‘wholly unrealistic proposition’ for many young people.

He also announced a new ‘benefits to bricks’ policy, under which housing benefits could be used to secure a first mortgage.

Mr Johnson told his audience in Blackpool: ‘We have a ludicrous situation where plenty of young people could afford to make monthly payments, they’re earning enough to cover astronomical rent bills.

‘But the ever-spiralling price of a house or a flat has inflated deposit requirements, that saving even just 10 per cent is a wholly unrealistic proposition for them.’

Under the PM’s plan, an independent review of access to mortgage

‘Buy their freedom’

finance for first-time buyers will take place, with the aim of widening access to low-deposit mortgages. Since the 2008 financial crash, lenders have generally insisted on larger deposits.

Mr Johnson said: ‘In this parliament, we will supercharge leaseholders’ ability to buy their own freedom, allowing 4.6 million households to own their own home. We will finish the right to own reforms Margaret Thatcher began in the 1 80s.’

He also announced help with home ownership for the unemployed. Under current rules, families start to lose benefits as soon as they have £6,000 in savings. Benefits also do not count as income when applying for a mortgage. But both these rules will be changed.

Families that manage to save a deposit could then continue getting housing benefit to pay off their mortgage.

In addition the ‘right to buy’ will be extended to around 2.5million households living in housing association properties.

They will be offered deep discounts, with the Government pledging to fund the construction of new social housing on a ‘like for like’ basis.

However, Polly Neate of Shelter said: ‘Rather than fanciful schemes, the Government just needs to build more social homes with fair rents.’