January 7th, 2015
The Mayor of London has announced two new schemes to help individuals in London get on to the property ladder and become home owners, funded by the Greater London Authority (GLA).
The first scheme, The Mayor’s First Steps Challenge, will see funding of up to £180 million go in to shared ownership. The idea is to help people own homes without the need for a large deposit. The funds aim to increase the build of 4,000 new homes in the next five years.
Boris Johnson, the Mayor of London, said: "Shared ownership is crucial in helping the unprecedented numbers of people in London desperate for good quality low cost housing.
"I want the funding announced today to help thousands more Londoners own homes and create more developments like Erith Park delivering excellent affordable properties."
The second scheme is to give £40 million of loan finance for a new housing product, enabling individuals to purchase their home with no deposit or mortgage. This product, Gentoo’s Genie, aims to deliver 2,000 new homes by 2025. The scheme enables people to buy shares in their property every time they make a monthly payment.
Genie has been introduced to London following on from its success in the North East of England. The GLA’s funding is expected to be repaid in 10 years.
Managing Director of Genie, Steve Hicks, said: "There has been a lack of innovation in the housing market which has left would-be homeowners feeling frustrated and unable to buy their own house.
"This 10-year partnership with the GLA will help customers into a minimum of 2,000 new homes in the capital who otherwise would have struggled to own their own homes, because of the difficult market conditions in London."
Article By: Ratchelle Deary, Marketing Executive at Contractor Mortgages Made Easy
Media Contact: Raman Kaur, Public Relations Manager
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