More than 100 developers and housing associations have submitted formal expressions of interest for a new £300m government scheme to bolster the housing market. Under HomeBuy Direct, buyers can take out a loan for up to 30% of the price of their home, with half the money supplied by the developer and half by quango the Housing Corporation. Developers have until 7 November to bid to include homes in the scheme. John Slaughter, director of external affairs at the Home Builders Federation, said: “Our feeling is it works from every party’s point of view, so we are positive about supporting it and expect there will be quite a lot of interest from the industry.” The scheme would involve buyers taking the equity loan on top of a mortgage. When the home is sold, the mortgage lender would be paid first. The Housing Corporation and developer would absorb any loss but could share in any profit.
 
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17 October 2008
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