Armed Forces To Be Given Housing Assistance

First-time buyers have never had it so tough, but one group of prospective buyers are going to get a helping hand. Serving soldiers and other members of the Armed Forces, together with their families, can apply for a shared equity loan to help them get onto the property ladder.

At current market rates a family on an income of £40,000 would be able to get a regular mortgage of around £160,000, but this would be pushed up to £210,000 under shared equity, so buying power is increased by nearly a third.

The loans are offered under the Government’s HomeBuy scheme for key workers, and are provided by the Department for Communities, in conjunction with four private lenders, and give interest-free repayments of part of the debt.

Housing Minister Yvette Cooper said: “This new support recognises the vital contribution our Armed Forces make to our communities. We want to help more key workers, like service personnel, and other first-time buyers get a foot on the property ladder. That is why we have set out investment of £10.2 billion to provide thousands more affordable and social homes.”

There have been complaints for a long time by service personnel about their accommodation. Barracks have been called cramped and decaying, and top army personnel have called for an improvement.

Conservatives have warned that soldiers would leave the Forces unless the Government made some changes for the better.

Currently some former services personnel end up without housing because they have no proof of a “local connection” in an area, and are not eligible for assistance as a result. In future personnel will be granted a connection with the area where they were stationed or were living when they left the services.

Mrs Cooper added: “It is only right that we provide our servicemen and women with the best possible support as they move back to civilian life. The service our Armed Forces give to their country must not place them at any disadvantage when applying for council housing.