Home Ownership

Treasury – in the House of Commons on 22nd June 2021.

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Photo of Julian Lewis Julian Lewis Chair, Intelligence and Security Committee of Parliament

What steps his Department is taking to encourage home ownership.

Photo of Jack Lopresti Jack Lopresti Conservative, Filton and Bradley Stoke

What steps his Department is taking to encourage home ownership.

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

The Government are committed to helping people own their own home. Our new mortgage guarantee scheme is increasing the availability of mortgages for credit-worthy households who only have a 5% deposit, helping them realise their dream of home ownership. The lifetime ISA provides a bonus to those under 40 saving towards a home, worth up to £450,000.

Photo of Julian Lewis Julian Lewis Chair, Intelligence and Security Committee of Parliament

I refer to my entry in the Register of Members’ Financial Interests. Last week, The Sunday Times detailed the colossal sums imposed on ordinary people by rapacious freeholders and reckless developers. Why should anyone risk purchasing a lease on a residential flat if we fail as a Government to protect innocent leaseholders from bearing the costs of defective extra storeys or defective extra cladding forced on them by those who are actually responsible for such terrible defects?

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

I thank my right hon. Friend for his question. The Government are investing more than £5 billion in building safety, including an additional £3.5 billion announced this year for the remediation of unsafe cladding for all leaseholders living in high-rise residential buildings. We are also introducing a new tax on the UK residential property development sector and a new levy on developers of certain high-rise buildings to help pay for cladding remediation costs.

Photo of Jack Lopresti Jack Lopresti Conservative, Filton and Bradley Stoke

Does my hon. Friend agree that the mortgage guarantee scheme has in a short time seen a dramatic increase in the availability of 95% mortgages, which will make home ownership a realistic goal for people aspiring to be homeowners?

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

My hon. Friend is absolutely right. Since the scheme has been up and running—as he says, it has been a matter of only a few weeks—we have seen the provision of 95% mortgages expand from just five to 192. This is a significant change, and I am grateful to the industry for the moves that it has made, with Government support.