The Liberal Democrats have unveiled plans to build 100,000 new affordable homes on publicly owned land.

Targetting first time buyers, the Lib Dems also plan to create an intermediate housing market by investing in Mutual Homes, Shared Equity and Golden Share schemes. Also planned is the conversion of existing buildings in an effort to protect greenfield sites.

Housing appears to be a key election strategy for the main parties. Previously both the Labour Party and Conservatives revealed their plans for affordable homes in the UK.

Those already owning property are also on the Lib Democrat radar. Under their proposals, home information packs, recently introduced will be abolished. Council tax will be scrapped, and in low demand areas, housing investment will be a key priority.

However, it is their “mutual homes” scheme which warrants most attention. Under the plans, mutual homes would let people buy a share of a property, usually worth about 5% of the building costs.

With Mutual Homes, rather than simply paying rent to a landlord, a tenant’s payments become their first step on the property ladder. The shares they buy in the Mutual Home Ownership Trust increase with value as house prices rise. When they wish to move - to buy a home on the open market, for example - they can sell their shares back to the mutual, using the proceeds as equity for their new home.

Charles Kennedy, leader of the Liberal Democrats said:
“Decent homes, decent communities, and the opportunity to own your own home. Liberal Democrat housing policy aims to make these aspirations a reality.

“We have a simple ambition: a decent home for everyone at a price within their means.

“In some communities high house prices and lack of affordable housing stock have become an acute crisis. Many people simply cannot afford a home in the area where they were brought up, or near their jobs.

“Our innovation is to create a completely new housing market to help people make the transition from renting to buying. Mutual homes will offer people the opportunity to build up an equity stake in a home gradually, investing only as much as they can afford.”

Edward Davey MP, Liberal Democrat Shadow to the ODPM, added:

“First time buyers will see new, more affordable housing options with the Liberal Democrats. Our three schemes for new mutual homes, for boosting investment in shared equity and for “golden share” homes offer a menu of options for young families.

“The environment is at the heart of our housing strategy. Unlike Labour, our boost to housing supply, include re-using empty homes, like the 180,000 empty homes in London and the South East alone. We will change the ridiculous VAT system that encourages building on greenfield sites while making it too expensive to repair or convert old buildings.”

Links:
Liberal Democrats

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