Government plans to build new homes on disused government land have been welcomed by the Royal Institute of Chartered Surveyors as a step in the right direction.

Under the new government scheme, at least 80 000 people will have the option to own a share of the equity (at least 50% of the home’s market value) in a new home built with public subsidy or on public sector land.

The proposals will also offer 20 000 to 30 000 people a share of the equity in a home bought on the open market under the Open Market Homebuy scheme, whereby the buyer pays for as much as they can afford for a share which will be at least 75% of the purchase price.

However, RICS is seeking further clarity from government on who these ‘other first-time buyers’ will be and who will decide who gets the financial help.

The group also believe that the up-front costs for property buying are still catching out many first time buyers. RICS wants the government to recognise average house prices in those areas of the country suffering highest housing demand.

Additionally, RICS questions whether this new scheme will work out significantly cheaper for buyers if rent is to be paid on the equity owned by government/bank.

The group would also like to see more help going to those in the most desperate need - the rate of social housebuilding is half what it was in 1997 and this must be reversed.
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