James Bawa, Chief Executive of Teachers Building Society, said: "We were pleased to hear in the Budget about the Government's £250m investment in a new shared equity scheme to help first-time buyers to step onto the housing ladder. We welcome any initiative designed to help people to buy their first home. Teachers Building Society is already a staunch supporter of the Government's HomeBuy Direct shared equity scheme, and in our experience this is hugely appreciated by many teachers who otherwise wouldn't be able to afford to buy their first home. However, as the financial support for the new scheme 'FirstBuy' is pledged for just one year, and it applies to new-build houses only, we would urge the Government and other interested parties to work together on more sustainable, long-term support for this area of the market, which is so important to the health of the wider economy."
The FirstBuy scheme would see the Government and house builders offer loans to first-time buyers purchasing a newly-built home. Buyers would need to have a deposit of 5% of the property's value, and the Government and housebuilders would put up 10% each through an equity loan, thus enabling people earning less than £60,000 a year to qualify for a 75% loan-to-value mortgage.