Boris Johnson’s new ‘Generation Buy’ scheme

BORIS Johnson’s new ‘Generation Buy’ scheme,  has promised to allow first-time buyers to get a mortgage with just a 5% deposit, in an effort to turn ‘generation rent’ into ‘generation buy’.

Boris told the virtual Tory party conference today, Tuesday, October 6, that he hoped the plan would create two million new home-owners but offered little detail on how the ‘long-term, fixed-rate’ mortgages might work.

He said the party needed to ‘fix our broken housing market’ and help young people onto the property ladder who can’t afford deposits. Experts have suggested the plan could cost tens of billions of pounds.

Highlighting the struggle of renters the PM said he would ‘transform the sclerotic planning system’ and make it faster and easier to build new homes ‘without destroying the green belt or desecrating our countryside’. He added: ‘But these reforms will take time and they are not enough on their own.

‘We need now to take forward one of the key proposals of our manifesto of 2019: giving young, first-time buyers the chance to take out a long-term, fixed-rate mortgage of up to 95% of the value of the home – vastly reducing the size of the deposit.’ Mr Johnson continued: ‘We believe that this policy could create two million more owner-occupiers – the biggest expansion of home-ownership since the 1980s. We will help turn generation rent into generation buy.’ There was no confirmation on whether the Government would underwrite the mortgages.

However, the 2019 Conservative Party manifesto pledged to ‘encourage a new market in long-term fixed-rate mortgages which slash the cost of deposits, opening up a secure path to home-ownership for first-time buyers in all parts of the United Kingdom’.

Launching an attack on Sir Keir Starmer’s Labour party, Boris added, ‘They may have million-pound homes in north London, but they deeply dislike home-ownership for anyone else. ‘We want to level up; they want to level down.’

In response, Labour’s Deputy Leader Angela Rayner said, ‘The British people needed to hear the Prime Minister set out how he and his government will get a grip of the crisis. Instead, we got the usual bluster and no plan for the months ahead. ‘We end this Conservative conference as we started it, with a shambolic testing system, millions of jobs at risk and an incompetent government that has lost control of this virus and is holding Britain back.’

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Written by

Charlie Loran

Manchester born mummy with a two year old diva (2020), living on the Costa del Sol for just short of a decade.
Former chef and restaurateur, holistic health fanatic and lover of long words.

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Comments


    • vincent backhouse

      07 October 2020 • 22:27

      What are we paying him for? First he chucks out the illegal immigrants. Then he puts all of the homeless Brits in those vacant posh hotels. Then opens all clubs and pubs. Makes sure that everyone has a job. Then bursts the Housing Bubble to make the homes affordable. Only then can we say, “well done Boris.”

      Reply
    • Naimah Yianni

      09 October 2020 • 11:59

      Back when I first bought a property in 1988 it was normal to get a 95% mortgage. If it´s fixed rate then this is probably a good idea, at least the young people have a chance to buy without the fear of interest rate increases hanging over them or being advised to buy into really bad schemes like interest only mortgages linked to endowment policies which in practice became a disaster for many buyers back in the 80s/90s

      Reply

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