§ Mr. Durant
asked the Secretary of State for the Environment whether he will consider further measures to help first-time home buyers.
§ Mr. Stanley
Two consultation papers are being sent today to interested bodies on two possible further methods of helping first time buyers. Copies have been placed in the Library.
The first concerns equity mortgage agreements, in which the lending institution, in exchange for a share in the equity of the house, would allow the borrower a lower rate of interest than on a conventional mortgage.
The second concerns homesteading schemes for the sale of unimproved houses for improvement by the purchaser. I am considering the possibility of allowing building societies which give mortgages on such properties to be compensated by local authorities so as to enable societies to waive or reduce the mortgage interest payments over the first few years of the loan. The consultation papers are being issued without commitment to legislation.