Stephen Metcalfe, local MP for
South Basildon and East Thurrock, has urged Basildon Council to help local
residents this year by again freezing Council Tax and by adopting and promoting
the Local Authority Mortgage Scheme (LAMS) to help first time buyers get on the
housing ladder.
Mr Metcalfe commented:
“Freezing Council Tax has made a real difference to the people of Basildon and
I want to see this continue next year. The Government has made the money
available for Council’s to do this and I hope that Basildon Council will
continue to maintain the freeze.”
“Households are facing difficult economic times and need
help keeping the cost of living down. Under the previous Government, council
tax more than doubled to £120 a month and this placed a significant burden on
local taxpayers.”
“A freeze in council tax in 2013-14 would represent a
real terms cut of around two per cent and a fall of nine per cent in real terms
over the past three years."
Stephen also said: “The
Local Authority Mortgage Scheme is a national scheme enables local
authorities to work in partnership with residential mortgage lenders, to take
advantage of the expertise already available from existing mortgage providers.”
“The combination of relatively
high house prices and caution over lending from banks and building societies
has meant that many potential first-time buyers, including those on council
housing waiting lists or those currently occupying affordable or social
housing units, are unable to save a sufficient deposit, even though they could
afford mortgage repayments on a typical first home.”
“The LAMS initiative is
designed to bridge that gap with an aim that local authorities will
be able to both free up affordable or social housing for
those that can’t afford to make mortgage repayments and reduce payouts to
private landlords and expensive short-term accommodation.”
“The indemnity (or guarantee)
provided by the Local Authority means that, although you would still have a 95%
mortgage, you could get a lower interest rate than you might otherwise get with
smaller deposits. If you can put down more than 5% yourself, this will reduce
the size of your mortgage and reduce the amount covered by the Local
Authority.”
Mr Metcalfe concluded: “As its
stands, the average age of the first time buyer is 35 and I want to see this
lowered. This is a fantastic scheme that would give first time buyers the extra
help that they so desperately need. I would encourage anyone who is interested
to write to Basildon Council asking them to participate and expressing their
interest.”
