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| 'Free loans' offer to homebuyers | 'Free loans' offer to homebuyers |
| (10 minutes later) | |
| The government is to promise first-time buyers in England "free" loans of up to 30% of their home's value, in an effort to reinvigorate the housing market. | |
| Households earning less than £60,000 will be offered loans free of charge for five years on new properties, co-funded by the state and developers. | Households earning less than £60,000 will be offered loans free of charge for five years on new properties, co-funded by the state and developers. |
| The move comes as Gordon Brown attempts a political fightback, amid an economic downturn and poor opinion poll ratings. | The move comes as Gordon Brown attempts a political fightback, amid an economic downturn and poor opinion poll ratings. |
| The Tories said it was a "short-term survival plan" for the prime minister. | The Tories said it was a "short-term survival plan" for the prime minister. |
| 'Large-scale' | 'Large-scale' |
| House prices are reportedly falling at their fastest rate since the early 1990s, while rising fuel costs and the global credit crunch are denting economic confidence. | House prices are reportedly falling at their fastest rate since the early 1990s, while rising fuel costs and the global credit crunch are denting economic confidence. |
| Communities Secretary Hazel Blears will announce a raft of proposals on Tuesday aimed at buoying the property market. She is one of several cabinet ministers putting forward plans seen as the beginning of Mr Brown's "recovery plan". | Communities Secretary Hazel Blears will announce a raft of proposals on Tuesday aimed at buoying the property market. She is one of several cabinet ministers putting forward plans seen as the beginning of Mr Brown's "recovery plan". |
| The loans system, called HomeBuy Direct, is to be run together with "large-scale" property firms. | The loans system, called HomeBuy Direct, is to be run together with "large-scale" property firms. |
| They are not going to help the vast majority of families facing a rising cost of living and falling house prices George Osborne, Conservatives | They are not going to help the vast majority of families facing a rising cost of living and falling house prices George Osborne, Conservatives |
| Once the five-year "free" period is up, homebuyers will be asked to pay a fee, the Department for Communities and Local Government said - although no more detail of this was provided. | Once the five-year "free" period is up, homebuyers will be asked to pay a fee, the Department for Communities and Local Government said - although no more detail of this was provided. |
| A spokesman added that "hundreds of millions of pounds" had been put aside in the last Budget for such a move. | A spokesman added that "hundreds of millions of pounds" had been put aside in the last Budget for such a move. |
| In a statement, the DCLG said: "Not only will this [HomeBuy Direct] help first-time buyers, but it will also support the industry by identifying buyers for their new homes. | In a statement, the DCLG said: "Not only will this [HomeBuy Direct] help first-time buyers, but it will also support the industry by identifying buyers for their new homes. |
| "This will help the housebuilding industry weather difficult conditions, so that, when the market recovers, they are ready to expand and get back on with building the new homes the country needs for the long term." | "This will help the housebuilding industry weather difficult conditions, so that, when the market recovers, they are ready to expand and get back on with building the new homes the country needs for the long term." |
| 'More homes sooner' | 'More homes sooner' |
| For existing homeowners who can no longer afford mortgage payments, the government says councils or social housing landlords can pay off the debt and instead charge tenants rent "at a level they can afford". | For existing homeowners who can no longer afford mortgage payments, the government says councils or social housing landlords can pay off the debt and instead charge tenants rent "at a level they can afford". |
| The DCLG is also promising to "bring forward funding for social housing from existing budgets, delivering more social homes sooner". | The DCLG is also promising to "bring forward funding for social housing from existing budgets, delivering more social homes sooner". |
| BBC political editor Nick Robinson said "there may be an important announcement on a stamp duty holiday", which has been the subject of much speculation in recent weeks. | BBC political editor Nick Robinson said "there may be an important announcement on a stamp duty holiday", which has been the subject of much speculation in recent weeks. |
| He added: "There is an attempt to say 'We can't end these global problems but we can help some people through them.'" | He added: "There is an attempt to say 'We can't end these global problems but we can help some people through them.'" |
| The prime minister has faced a difficult few months, with Labour losing two parliamentary seats in by-elections, the London mayoralty and many councillors in May's local elections. | The prime minister has faced a difficult few months, with Labour losing two parliamentary seats in by-elections, the London mayoralty and many councillors in May's local elections. |
| 'Resilient' | 'Resilient' |
| On Monday, he said the UK faced "unique circumstances", including oil prices trebling and the global credit crunch. | On Monday, he said the UK faced "unique circumstances", including oil prices trebling and the global credit crunch. |
| But Mr Brown said the government was "resilient in... dealing with these problems". | But Mr Brown said the government was "resilient in... dealing with these problems". |
| He earlier denied a rift with Chancellor Alistair Darling, who had said the country was facing its worst economic crisis in 60 years. | He earlier denied a rift with Chancellor Alistair Darling, who had said the country was facing its worst economic crisis in 60 years. |
| For the Conservatives, shadow chancellor George Osborne said: "We will look at the details of these measures and we will support those that will work. | For the Conservatives, shadow chancellor George Osborne said: "We will look at the details of these measures and we will support those that will work. |
| "But let's be clear, they are not going to help the vast majority of families facing a rising cost of living and falling house prices. | "But let's be clear, they are not going to help the vast majority of families facing a rising cost of living and falling house prices. |
| "Nor do they amount to the first instalment of the economic recovery plan we were promised. | "Nor do they amount to the first instalment of the economic recovery plan we were promised. |
| "I suspect that what we will see in the coming weeks is a desperate and short-term survival plan for the prime minister rather that the long-term economic plan the country needs." | "I suspect that what we will see in the coming weeks is a desperate and short-term survival plan for the prime minister rather that the long-term economic plan the country needs." |
| Liberal Democrat Leader Nick Clegg said: "This looks like a hotchpotch of measures thrown together to save Gordon Brown's political skin. | Liberal Democrat Leader Nick Clegg said: "This looks like a hotchpotch of measures thrown together to save Gordon Brown's political skin. |
| "The social housing stock could be increased far more easily by allowing local authorities to buy up unsold properties and use them for new social housing. | "The social housing stock could be increased far more easily by allowing local authorities to buy up unsold properties and use them for new social housing. |
| "Yet again the government is desperately scrabbling around for a way to fix problems of its own making." | "Yet again the government is desperately scrabbling around for a way to fix problems of its own making." |