|Coalition Government Housing Muddle|
George Osborne's plans to offer state-backed mortgages have been thrown into confusion as ministers appeared muddled over whether they could be used to buy second homes.
Osborne had suggested the scheme could be used for people to add more than one house to a property portfolio. He said officials had not fully worked out details of the scheme, which will offer Government-backed mortgages to help people buy homes with just a five per cent deposit.
Allowing second homes could potentially squeeze out struggling first time buyers from the housing market if current home owners are getting coalition government help to buy holiday homes or city crash pads.
The Treasury has confirmed that the idea of state-backed mortgages for second homes is still under consultation.
So the coalition government is:
- pressing ahead with a tax cut for millionaires averaging £100,000
- introducing a mortgage scheme will help people, no matter how high their income, to buy a subsidised second home worth up to £600,000.
- imposing a "bed room tax" on some of the poorest families in our communities, the vast majority of whom have no alternative smaller housing available to them