First-Time Buyers To Be Granted 20 Percent Discount On Starter Homes

Good news for first-time buyers as a 20 percent discount is for the taking, as the government announced that that it will double its housing budget. The announcement was made by no other than George Osborne, a British Conservative Party politician who has been Chancellor of the Exchequer since 2010 and Member of Parliament for Tatton since 2001.

The Telegraph reports that the Chancellor spoke in the House of Commons, saying, "In the end Spending Reviews like this come down to choices about what your priorities are. And I am clear: in this Spending Review, we choose to build."

The plan of the government includes spending more than £2 blillion on building 200,000 homes in the span of five years. The money will be given to the developers to provide the stated 20% discount for first time buyers.

Campbell Robb, Shelter's chief executive, on the other hand, warned that such move means ignoring those facing soaring rental coasts.

"The Chancellor can't ignore the fact that home ownership schemes like starter homes or shared ownership won't work for many, so building more genuinely affordable homes to rent is still absolutely essential," he said.

"Especially when there are plans to force councils to sell off large swathes of their social homes, and in the wake of worrying new cuts for those needing support with their housing costs, including vulnerable single people."

Another revelation made by Mr. Osborne is the Help to Buy: Shared Ownership scheme which will loosen the restrictions on who can by new homes. The limit will be lifted and it would mean anyone with a household income of less than £80,000 outside London - or £90,000 inside the capital - can buy a home through shared ownership.

The Telegraph report adds that Londoners who can pay a downpayment of 5 percent of a house's value will be able to get an interest-free loan worth up to 40 percent of the price of a newly-built home.

In relation to this, Daily Mail reports "that Another £400 million will be spent on 8,000 specialist homes for older people or those with disabilities."