1.101 Laying the Foundations: A Housing Strategy for England, published on 21 November 2011, set out a number of actions the Government is taking to increase house building, stabilize the housing market and enable more people to own their own home.12 The Government will:
• introduce a new build indemnity scheme to increase the supply of affordable mortgage finance for new build homes. Under the scheme, home buyers will be able to purchase new build houses and fats with a five per cent deposit. House builders and the Government will help provide security for the loan. The Government will take on a contingent liability which will build up in line with purchases under the scheme, to a maximum of £1 billion. This will help up to 100,000 families and young people to buy their own home;
• reinvigorate the Right to Buy to support social tenants who aspire to own their own home, by raising the discounts to make it attractive to tenants across England. For each home purchased, the Government will provide an additional affordable home, in addition to plans to deliver up to 170,000 affordable homes through the new Affordable Homes Programme;
• launch a new £400 million Get Britain Building investment fund, which will support firms in need of development finance. This will help to drive progress on stalled sites which have planning permission and are otherwise ready to start. The Government will issue a prospectus to interested developers by the end of the year; and
• support new development, which could include modern garden cities, urban and village extensions. The Government will invite proposals from developers and local authorities for new developments which have clear local support.
1.102 The Government is committed, through the Green Deal, to improving the energy efficiency of buildings to benefit energy bill payers and the environment. As additional one-off support for this, delivering the commitment at Budget 2011, the Government is allocating £200 million to encourage early uptake of the Green Deal in its initial phase over 2012-13 and 2013-14. Further details will be set out next year and will be subject to state aid considerations.
1.103 The Government is publishing analysis showing that the stamp duty land tax relief for first time buyers has been ineffective in increasing the number of first time buyers entering the market. This relief will therefore end on 24 March 2012 as planned. The Government is instead prioritising more effective measures which provide better value for money as set out above and in Laying the Foundations: A Housing Strategy for England.
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12 Laying the Foundations: A Housing Strategy for England, Department for Communities and Local Government, November 2011.