A review of the mortgage system would ensure that tenants’ records in paying rent would contribute towards their ability to secure a mortgage on a first home, says Liz Truss.
The front runner in the race to become the next Prime Minister says that she wants her premiership to be marked by the breaking down of barriers to home ownership.
Government figures show that more than half of current renters could afford a mortgage, but only one in 17 are able to access a typical first-time buyer mortgage because most lenders ignore an applicant’s ability to pay rent as proof that they can afford to pay a higher mortgage.
Few other details have been given by the MP, in a series of weekend speeches ahead of the arrival of ballot papers with Tory party members today.
However, on broader housing issues, Truss says she will also abandon “top-down Whitehall-imposed housing targets” and “rip up the red tape that is holding back housebuilding.”
Councils will instead get to choose how many new homes their communities need to build, her team says.
But a Truss administration would “work with local communities to identify sites ripe for redevelopment and reduce planning restrictions – turbocharging commercial and residential development”.
Truss herself adds: “As a former councillor, I remember those painful hours sitting through planning committees. I’ll put power back in local councillors’ hands who know far better than Whitehall what their communities want.”
She also says she wants to create new model towns and industry hubs, in the spirit of Bournville, in the Midlands and Yorkshire.
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