£250m pledged to help 10,000 first-time homebuyers

What Was Announced:

• Mr Osbourne pledged £250m to help 10,000 first-time homebuyers purchase newly built flats and houses in England funded by bank levy proceeds
• The buyer would have to put up 5% of the cost, while the government and home builder would both put up 10%, in a move aimed at boosting the construction industry.
• A scheme to help out-of-work homeowners with mortgage arrears, introduced by the previous government, will also be extended.

Entrepreneur Country Reaction:

Whilst the announcement of £250m to assist first-time buyers is likely to resonate with voters it is the announcement of the simplification of the planning applications and the combined impact on small businesses in the construction industry that will have the longer term impact and is seen as a way of supporting up to 10,000 jobs in that sector.

Reaction From Entrepreneurs and Business:

The Council of Mortgage Lenders says the new shared equity scheme for first-time buyers will provide "modest help" but would not "fundamentally change the landscape", but the Home Builders' Federation said it was a "vital and extremely positive move".