New help to get buyers on housing ladder

More people would be able to afford their own home thanks to new support proposed by Manchester City Council.

The intention is that all planning applications for new developments of more than 15 homes would be expected to include provision for homes affordable to those who could otherwise not afford to buy or rent or face the Council withholding planning permission.

Making homes affordable can be done in a number of ways, including subsidising purchase costs or rents and enabling people to buy a share of a home rather than the whole property.

But the support schemes won't apply just to new homes - first-time buyers would also be able to get help to buy existing properties they could otherwise not afford.

The Council believes that action is needed to help people unable to afford market prices for homes, especially because the percentage of homes affordable to those on average incomes fell from 50 per cent in 2002 to 23 per cent last year.

The city-wide target of 20% of affordable housing will apply to all new developments, including social rented and shared ownership housing.

A report to the Council's Executive earlier this month set out a range of measures to tackle rising prices, under-occupation and poor quality housing but stressed that these are only part of the solution along with getting more people into work and increasing average incomes.

The Council plans to promote greater access for first-time buyers to joint equity schemes or mortgage arrangements, enabling people to buy a share in their own homes. This will apply to both new and existing houses in Manchester.

Councillor Neil Swannick, Executive Member for Environment, said: "Manchester's population is growing, with people wanting to stay in the city and newcomers wanting to move in.

"Confidence in the housing market and increased demand signals success but also brings with it higher prices. The Council is committed to increasing the number of families who can afford to buy homes in the city and providing choice for middle-income buyers."

Councillor Eddy Newman, Executive Member for Neighbourhood Services, said: "This is the first step to developing a range of options to address the needs of Mancunians who are experiencing difficulties taking the next step on the housing ladder.

"This comprehensive review of the housing market in relation to the affordability of housing is a positive step in making sure the benefits of the regeneration of the city are shared by all."

Informal consultation began in October on the Council's approach to improving access to affordable housing. Providing For Housing Choice (Supplementary Planning Document and Planning Guidance) sets out these plans and the Council is discussing with developers how best they might be implemented.

Later in the year there will be a formal period of consultation when anyone with an interest or view on making housing more affordable can comment.

The Council will consult in detail with housing associations, developers and Government agencies - presenting detailed proposals on implementing new financial products to assist access to affordable housing. Consultation on Providing For Housing Choice is one of the first steps.

Media contact:

Martin Hellewell, tel: 0161 234 3729.