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Labour considers cutting deposits to 2.5% under Your First Home scheme
The plan would also be weighed against inflation concerns tied to energy prices and the Iran war, plus political and industry risks highlighted by the former Persimmon executive Jeff Fairburn.
The Labour government is considering a “Your First Home” approach that would cut required deposits to 2.5%, with the intent of giving a boost to the housebuilding sector, which the article describes as stuck in a funk.
The article lays out three reasons Labour has hesitated so far to reheat the Tories’ decade-long help-to-buy scheme, including inflation risks from increasing housing subsidies as broader inflation, driven by energy prices and the Iran war, is described as on the march.
It also cites political awkwardness in adopting what it calls George Osborne’s playbook, and warns about the risk of creating more cases like Jeff Fairburn, a former Persimmon boss who received a £75m bonus in 2018, with help-to-buy described as turbocharging the value of share-based incentives.
The article argues the government could look foolish if, in trying to meet its housebuilding targets, it ended up driving outcomes it associates with Persimmon’s past example.