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New right to buy 'has £75,000 off'

David Cameron has pledged to "reboot" the right-to-buy scheme by offering council tenants discounts of up to £75,000.

The larger-than-expected extension will encourage "strong families and stable communities", according to the Prime Minister.

Those who have five years' residency could receive a 35% discount, with an extra 1% for each added year up to a maximum of £75,000.

Tenants in flats will get 50% off after five years, with 2% added yearly.

Previously it was thought discounts would be limited to £50,000. The money raised from sales will go towards building more social housing.

The Government is also announcing more details of its NewBuy Guarantee, designed to give would-be buyers access to mortgages even if they only have a 5% deposit. Names are being released of three high-street lenders and seven construction firms who have agreed to support the scheme.

Ministers say they believe the initiative will help 100,000 people who would otherwise have been frozen out of the property market and will support 50,000 construction jobs.

Developers would contribute 3.5% of the purchase price while the Government guarantees 5.5%. The scheme is available on flats and houses up to a maximum value of £500,000 in England only.

Mr Cameron said: "Strong families and stable communities are built from good homes. That's why I want us to build more homes and I want more people to have the chance to own their own home.

"It's no good hoping people will climb the property ladder if the bottom rung is missing. Affordable properties and available mortgages are vital. So we're working with leading housebuilders and lenders to get the scheme under way."


From Belfast Telegraph