Manifesto promise rejected by consultation

Published on Wednesday 2 April 2008 19:41

PROPOSALS for £2,000 Scottish Government grants to help first-time home buyers get on to the housing ladder have been given the thumbs down in a consultation exercise.

Most people thought the grant was too small to make any difference and would simply push up house prices.

The verdict came in a research report published yesterday, which summarised the responses to the Scottish Government's draft housing policy, Firm Foundations, published last October.

"A majority of respondents were opposed to the suggestion that all first-time buyers should be given a 2,000 grant to assist with buying a home," the report said.

"It was felt that the amount proposed in grant was too small to make a significant difference to a household's capacity to purchase a home, and that it was likely any such grant would simply feed through into increased prices."

The report said that there was more support for the idea of targeted help for those struggling to afford a home, and for people who have additional requirements, such as existing households needing to move into larger accommodation.

Grants of 2,000 were first pledged in the SNP election manifesto.

This was qualified in the housing document, which instead said there would be an "assessment" of proposals.

The document also set a national goal of 35,000 new homes a year by the middle of the next decade, and proposed scrapping the right to buy for new homes built by councils and housing associations.

Today's analysis of 387 responses to the blueprint found "strong support" for the proposal to boost new building.

While most respondents were against grants for first-time buyers, they agreed more use could be made of the private rented sector to house the homeless and those on low incomes.

There was, the report said, "almost total" support for scrapping the right to buy for new-build social housing, and many respondents thought there should be further restrictions on the right to buy.

Communities minister Stewart Maxwell said: "Over the coming weeks I will discuss responses with Cosla and other stakeholders.

"Following these discussions, the government will announce the broad direction of its policies for meeting Scotland's housing needs in June."