HomeBuy Direct Scheme

The government has announced that it will help first time buyers to buy up to 18,000 unsold properties built by 130 developers across England.The government will set aside £400million to help first-time buyers gain a stake through an equity loan.

Margaret Beckett, the housing minister, said 130 developers had agreed to participate in the HomeBuy Direct scheme. An equity loan, which will be free of charge for five years, could be used as a deposit and cover up to 30% of the purchase price.

That meant a first-time buyer could purchase a house worth £180,000 for as little as £126,000, the government said. As with other HomeBuy schemes, it is open to first-time buyers with a household income of less than £60,000 who cannot otherwise afford to buy.

Details published show that the two builders, Persimmon and Barratt, have gained by far the most sites to qualify for the government's £400million HomeBuy Direct scheme, with Persimmon taking over a fifth of all the allocated sites.

In total, homes from 130 builders across 1,000 sites will qualify for help from the shared ownership scheme, which will see the government and builders each put up 15% of the value of a new home to act as a deposit on house purchase.The government and builders then take their share of the profits if there is any increase in value of the property.

In total, the government accredited 205 Persimmon sites for help from the scheme, with Barratt getting 136 to qualify. Bellway was the next most successful, with 93 sites qualifying for the scheme.

Overall, the top six house builders have over half of the sites allocated under the scheme, with 520 qualifying.The list of 130 successful bidders includes all the major builders as well as a number of registered social landlords.