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BUDGET 2011: Homebuy Direct gets Budget reincarnation

Chancellor George Osborne will today announce £250 million to help first time buyers through a new version of Labour’s Homebuy Direct initiative.

Firstbuy Direct is expected to help 10,000 people get on the housing ladder, filling the gap left after last autumn’s withdrawal of its Labour launched predecessor.

Widespread reports suggest first-time buyers below a certain income threshold will gain access to a 25 per cent equity loan.

The government will put in 10 per cent and the housebuilder another 10 per cent while the buyer will have to find a 5 per cent deposit and the other 75 per cent through a loan and savings.

Under the previous Homebuy Direct scheme, the housebuilder and the state each put in 15 per cent.

It is estimated the scheme will help safeguard 40,000 jobs.

A senior source at a major housebuilder told CN he was glad the government “appears to be getting the message” about the shortage of mortgage finance.

Reviving shared equity scheme was a key plank of the Home Builders Federation.

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